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CAMPBELL'S 
ACTUAL  ACCOUNTING 


AN  APPRENTICESHIP   IN   BUSINESS 

The  Modern  Method  of  Instruction  in  Elemen- 
tary and  Advanced  Accounting,  Business 
Forms  and  Business  Customs 


By  THOMAS  F.  CAMPBELL.  A.  M. 


INDIANAPOLIS 

THE  BOBBS-MERRILL  COMPANY 

PUBLISHERS 


Copyright   1911 
Copyright    I9I2 

By  THOMAS  F.  CAMPBELL.  A.  M. 


JUST  A  WORD 


Prefatory. — This  text-book  will  be  found  more  practical  than  many  other 
texts,  because  it  was  not  primarily  "made  to  sell."  It  originated  in  a  need 
of  the  school  room.  Further,  the  author  was  first  a  business  man,  and  when 
called  from  business  to  the  schoolroom,  it  was  that  he  might  carry  out  the 
idea  of  an  enterprising  school  firm  that  the  teacher  of  business  should  be 
actually  familiar  with  business,  should,  in  fact,  be  himself  a  business  man. 
Several  times  he  tried  to  obtain  release  from  the  labor  involved  in  teaching 
an  original  course  orally,  by  "trying  out"  the  new  texts  of  the  various  pub- 
lishers, but  each  time  failed  to  find  anything  that  pleased  either  proprietors, 
assistant  teachers  or  students. 

The  Author's  Ideal  as  a  teacher  is  so  to  train  a  student  that  he  will 
never  meet  in  business  anything  more  difficult  than  he  has  already  mastered 
in  the  schoolroom,  and  mastered  so  thoroughly  that  it  has  become  a  part  of 
his  mentality,  never  to  be  forgotten. 

This  Text-Book  is  the  result  of  his  efforts  to  lighten  the  labor  of  oral 
teaching,  and  to  make  the  work  easy  for  his  assistant  teachers  and  more  help- 
ful to  his  students.  He  acknowledges  with  sincere  appreciation  the  hearty 
endorsement,  co-operation,  and  helpful  suggestions  of  all  these  assistants 
through  a  teaching  experience  of  twenty  years,  being  especially  gratified  that 
neither  teacher  nor  student  who  has  known  this  course  has  ever  preferred 
any  other,  though  several  received  their  first  training  from  other  sources.  He 
w^ould  also  acknowledge  the  courtesy  and  valuable  assistance  of  a  number  of 
business  firms  over  the  country  from  the  Atlantic  to  the  Pacific  who  have 
kindly  furnished  forms,  rendered  sample  invoices,  and  extended  many  help- 
ful suggestions  and  criticisms. 

The  Book  is  Offered  to  the  schools  in  the  belief  that  in  its  original  appli- 
cations of  established  principles ;  in  its  methods  of  developing  the  student's 
originality  and  self-reliance ;  in  the  freedom  that  it  gives  the  capable  teacher 
to  introduce  original  work,  and  to  curtail  or  change  the  text  as  he  pleases, 
we  are  offering  the  appreciative  teacher  a  course  of  study  that  he  can  adapt 
to  any  locality  or  conditions;  a  course  that  will  give  the  utmost  freedom  in 
the  exercise  of  his  own  ideas,  with  the  minimum  of  labor  to  him  and  the 
maximum  of  helpfulness  to  the  student,  a  course  that  will  every  day  bring  a 
pleasing  variety  into  his  life  work,  never  wearying  him  with  a  tiresome  rou- 
tine of  text-book  and  key,  and  will  every  year  broaden  him  as  a  teacher  and 
make  him  a  better  and  more  efficient  accountant. 

THE  PUBLISHERS. 


255946 


Digitized  by  the  Internet  Archive 

in  2007  with  funding  from 

IVIicrosoft  Corporation 


http://www.archive.org/details/campbellsactualaOOcamprich 


CAMPBELLS    ACTUAL    ACCOUNTING 


PRELIMINARY    PRACTICE 


Introductory  Definitions,  illustration  and  discussion  of  Entries 

1.  Business  is  a  general  term  applied  first  to  merchandising  and  later  to  almost  any  occupa- 
tion by  which  one  seeks  to  make  money.  It  is  usually  applied  to  some  form  of  trade  and  dis- 
tinguished from  the  professions  in  which  one  earns  his  living  by  the  employment  of  his  mind, 
chiefly,  and  from  Mechanical  Arts  in  which  one's  chief  asset  is  manual  skill.  To  the  bookkeeper, 
however,  whatever  brings  in  money  is  Business. 

2.  Merchandise  (abbreviated  Mdse.)  is  anything  bought  to  sell  again  with  a  view  to  profit. 

3.  Bookkeeping  is  making  a  proper  record  of  business  transactions. 

4.  Two  methods  of  recording  business  transactions  are  recognized  by  accountants  and 
termed,  respectively.  Double  Entry  Bookkeeping  and  Single  Entry  Bookkeeping.  The  latter  will 
be  explained  later,  when  you  will  understand  it  better. 

5.  Double  Entry  is  the  method  most  extensively  employed,  both  because  it  is  the  more  ac- 
curate, and  because  it  furnishes  a  more  complete  and  serviceable  record  of  the  transactions  of  the 
business.  Single  Entry  will  show  how  much  the  firm  is  in  debt,  and  to  whom ;  how  much  is 
owing  to  the  firm  and  from  whom ;  how  much  was  invested  at  the  beginning  of  the  year,  and  how 
much  has  been  made  or  lost  during  the  year.  Double  Entry  not  only  shows  all  this  that  is  shown 
by  Single  Entry,  but  also  shows  the  cost  of  running  the  entire  business,  or  any  part  of  it,  in 
what  department,  or  departments  the  gains  were  made  and  where  and  how  the  losses  occurred, 
thus  enabling  the  proprietor  to  provide  against  such  losses  in  the  future. 

6.  Double  Entry  is  so  called  because  it  consists  in  a  double  record  of  each  transaction.  If 
John  Smith  should  buy,  on  account^,  10  yards  of  calico  at  5c  per  yard,  Single  Entry  would  re- 
cord that  John  Smith  owes  50c  for  merchandise,  while  Double  Entry  would  also  record  that  a 
value  of  fifty  cents  (including  the  profit)  has  been  taken  out  of  merchandise  and  that  hence, 
there  is  that  much  less  (not  counting  the  profit)  remaining  in  stock. 

7.  The  Books  Required,  originally,  were  the  Day  Book,  the  Journal,  and  the  Ledger,  and 
these  still  form,  theoretically,  the  foundation  of  every  set  of  double  entry  records.  Practically,  the 
Day  Book  and  the  Journal  are  consolidated  in  modern  bookkeeping,  or  else  the  Journal  is  entirely 
eliminated.  The  Day  Book,  when  used,  is  a  simple,  but  carefully  detailed,  statement  of  the  trans- 
actions, giving  date,  quantity,  kind  of  goods,  and  price.  It  frequently  appears  in  business  as  the 
"counter  blotter,"  and  as  such  is  often  kept  by  persons  quite  ignorant  of  the  principles  of  bookkeep- 
ing. The  work  of  the  bookkeeper  would  then  begin  with  the  transfer  of  the  record  from  the  Day 
Book  to  the  Journal  (if  that  be  used)  or  directly  to  the  Ledger  as  is  the  more  general  practice. 
In  the  Journal,  the  record  of  the  illustrative  transaction  used  in  Section  6  would  be  resolved  into  a 
debit  and  a  credit,  as  follows : 


s^ 


S£> 


1.     On  account  means  to  buy  but  not  to  pay  for  it  at  the  time  of  purchase,  the  amount  being  charged  to 
the  purchaser  on  his  account. 


o   t    n  c,  «f/  _     » 


f'?  •*o»«r 


■    CAMPBELL'S  ACTUAL  ACCOUNTING 


Meaning  that  John  Smith  owes  (is  in  debt  to,  because  he  has  obtained  from)  the  Merchan- 
dise account,  goods  to  the  amount  of  50c.  The  word,  Debtor,  (always  omitted  in  modern  book- 
keeping), is  understood  as  following  the  name  of  the  person,  or  account,  to  be  charged  which  is 
always  written  on  the  first  line  used  in  making  the  entry  and  well  to  the  left  (close  to  the  date 
column)  of  the  page,  and  the  word  To  is  understood  to  precede  the  name  of  the  person,  or 
account,  to  be  credited,  which  is  always  written  on  the  second  line  of  the  entry  and  about  an 
inch  to  an  inch  and  a  half  to  the  right  of  the  preceding  debit.  But  this  "sign  of  the  credit"  has 
also  disappeared,  and  the  modern  entry  combining  the  records  of  both  Day  Book  and  Journal 
appears, — 


/d^. 


so 


So 


When  the  record  appears  in  the  above  form  the  book  is  called  the  Daybook-Journal.  This 
is  the  form  that  will  be  used  by  the  student  in  the  beginning  of  his  work,  as  the  book  of  original 
entry. 

8.  By  the  Book  of  Original  Entry  we  mean  the  book  in  which  the  first  record  of  a  transac- 
tion is  made.  If  a  Day  Book  be  kept,  it  is  the  book  of  original  entry ;  if  the  first  entry  be  made 
in  journal  form  with  the  items  of  the  transaction  appended,  then  this  Daybook-Journal  is  the 
book  of  original  entry;  and  if  some  of  the  entries  be  first  recorded  in  one  book  and  others  in 
another,  as  is  the  case  when  all  cash  is  entered  in  a  Cash  Book  and  all  sales  in  a  Sales  Book,  then 
both  of  these  books  as  well  as  the  Journal  would  be  known  as  books  of  original  entry^ 

9.  The  Ledger  is  the  only  other  book  to  be  considered  at  present.  Into  it  are  copied  the 
debits  and  credits  of  the  Journal,  putting  together  on  one  page  all  items  that  pertain  to  one 
account,  and  in  this  way  showing  at  a  glance  all  that  John  Smith  owes  and  all  that  he  has  paid, 
and  in  another  account  all  that  has  been  paid  out  for  merchandise  and  all  that  has  been  received 
from   the  sale  of  it;   and  so  on   for  all   the   accounts  of  the  business. 

10.  The  Ledger  is  made  up  entirely  of  these  accounts  and  for  this  reason  is  called  the 
Book  of  Accounts. 

11.  Study  of  Debits  and  Credits.  When  a  number  of  students  begin  the  study  of  book- 
keeping together,  it  will  be  found  very  advantageous  if  the  teacher  will  arrange  to  teach  this 
subject,  as  illustrated  by  the  next  twelve  transactions,  orally,  reproducing  on  the  blackboard,  in 
blank,  the  detachable  page  next  following  and  filling  in  the  amounts  as  the  transactions  are  dis- 
cussed, obtaining  from  the  students,  by  questioning,  full  directions  for  filling  in  the  numbers. 
When  this  is  not  convenient,  the  student  will  detach  the  page  and  keep  it  with  him  as  he  care- 
fully studies  the  transactions  discussed  and  journalized  in  sections  12  to  14.  He  will  take  up  also 
C.  W.  Burke's  daybook  journal  in  which  to  copy  the  journal  entries  as  he  proceeds. 

(a)  To  The  Student:  Study  v6ry  carefully  every  step  in  this  introductory  practice.  It 
will  be  possible  for  you  to  hurry  through  it  without  thought  or  to  do  your  work  exactly  like  the 
student  next  to  you,  if  he  be  doing  the  same  work ;  but  you  will  be  cheating  yourself.  When  you 
come  to  the  actual  business  transactions  that  follow,  your  work  will  no  longer  be  like  that  of  any 
other  student  in  the  schoolroom.  If  you  have  thoroughly  studied  and  understood  these  illustra- 
tive transactions,  you  will  be  able  to  go  forward  without  any  difficulty,  but  if  not,  you  will  be 

1.  The  books  of  original  entry  are  the  only  records  of  any  business  that  are  admissible  in  court  as  evidence 
in  an  action,  and  in  order  that  they  may  be  of  real  value  the  entries  must  appear  as  being  made  at  the  time  of 
the  transaction  and  not  altered  in  any  wise  since.  Erasures  will  invalidate  an  entry  for  purposes  of  evidence. 
If  an  error  be  made  and  a  correction  be  necessary,  it  should  be  made  in  such  a  way  as  to  leave  the  original 
«itry  perfectly  legible  and  to  show  the  entire  reason  for  the  change. 


CAMPBELL'S    ACTUAL    ACCOUNTING 


CAMPBELL'S    ACTUAL    ACCOUNTING 


tied  up  and  unable  to  make  any  progress  until  in  some  way  you  go  back  over  and  master  the 
principles  presented  in  this  practice,  while  the  student  who  has  mastered  this  practice  thoroughly 
at  the  start,  will  get  so  far  ahead  of  you  that  you  will  never  catch  up  with  him.  Do  not  hurry 
at  the  beginning.  Lay  a  thorough  foundation.  Speed  will  come  as  you  progress,  if  the  foundation 
be  thorough.  You  should  be  able  easily  toward  the  end  of  your  course  to  go  many  times  as  fast 
as  you  can  at  the  beginning.  The  first  half  of  your  course  ought  to  take  at  least  two-thirds  of 
your  time  in  school. 

12.     C.  W.  Burke  invests  $5,000  in  a  jobbing  business,  January  2  191 — . 

When  a  man  invests  money  in  business,  even  before  he  buys  or  sells,  or  does  any  business 
whatever,  two  accounts  in  his  ledger  will  be  affected  and  should  show  records.  These  are  the 
two  accounts  represented  in  the  squares  marked,  A  and  B  at  the  top  and  to  the  left  on  your 
detached  page  of  accounts,  and  entitled.  Cash  and  C.  W.  Burke,  Proprietor.  Observe  the  number 
marked,  i,  in  red  ink  in  each  of  these  two  accounts.  You  see  that  it  is  $5,000,  that  it  appears 
on  the  right  hand  or  credit  side  of  C.  W.  Burke's  account  and  on  the  left  hand  or  debit  side, 
of  the  Cash  account.  This  is  an  accountant's  way  of  stating  that  Mr.  Burke  has  furnished  $5,000 
to  the  business.  We  always  Credit  the  account  that  furnishes  the  value  and  Debit  the  account 
that  receives  it. 

Note — It  will  not  take  a  very  great  stretch  of  the  imagination  to  consider  your  detached  page  of  accounts  a 
sort  of  checkerboard,  whereon  every  business  "move"  or  transaction  is  indicated  by  placing  a  credit  in  the  square 
from  which  the  value  comes,  and  a  debit  in  the  square  into  which  it  moves. 

The  first  or  original  record  of  such  a  transaction  is  made  in  the  principal  book  of  original 

entry,  at  the  time  of  the  transaction,  and  should  be  copied  at  the  head  of  the  first  page  of  Mr. 
Burke's  daybook-journal  exactly  as  follows : 


^jS^~^^^^^^^i-i>d<:^Z^.-<i^t!S<^^^Z'^>^^^<l^  -.^^-trt^  - 


^--ZJ-^Z-«^<*^  ^^.J?^^ 


TlfrtS^^^ 


^aaa 


s^P£?a 


(a)  Observe  that  in  the  journal  record,  the  debit  is  indicated  by  the  writing  of  the  name  of 
the  account  to  be  debited,  the  word,  Cash  on  the  first  line,  following  the  explanation,  close  to  the 
left  hand  margin,  with  the  figures  in  the  left  hand  money  column;  and  that  the  credit  is  indi- 
cated by  writing  the  name  of  the  account  to  be  credited  on  the  second  line,  about  one  inch  to 
the  right,  with  the  figures  in  the  right  hand  monsy  column.  These  two  lines  constitute  the  jour- 
nal entry.  The  explanatory  statement  which  in  this  case  chiefly  preceeds  the  entry,  is  the  day- 
book feature. 

(b)  From  the  preceding  we  deduce  a  practical 

RULE  FOR  JOURNALIZING :  Debit  (or  charge)  the  account  that  receives  the  value  trans- 
ferred in  the  transaction,  and  Credit  the  account  that  furnishes  it. 

(c)  The  $5,000  of  this  first  transaction,  Mr.  Burke  has  already  deposited  in  the  bank. 
Observe  that  the  currency  representing  that  amount  is  in   Filing  Envelope  No.  4  which  repre- 

1.  "Y.  S."  is  used  as  an  abbreviation  of  the  words,  Your  State,  and  will  be  used  in  this  work  in  place  of  the 
name  of  the  State  where  such  is  needed  in  illustrations,  to  avoid  localizing  the  place  of  business,  which  each 
student  would  best  consider  to  be  his  own  location. 


8 


CAMPBELL'S    ACTUAL    ACCOUNTING 


sents  the  bank,  but  do  not  remove  it.  Money  deposited  in  the  bank  is  beyond  your  control^.  Turn 
to  the  pass  book  and  observe  the  entry  made  therein  at  the  top  of  the  first  page,  by  the  banker. 
This  is  the  bank's  receipt  for  the  money  left  with  it.  See  a^so  the  record  that  Mr.  Burke  has 
made  of  this  deposit  at  the  top  of  the  first  page  of  the  stubs  of  his  check  book.  Ask  your 
teacher  to  explain  anything  that  you  do  not  understand. 

13.  Next  to  recording  the  investment  we  will  consider  the  entry  for  the  payment  of  store 
rent.  Turn  to  the  Prepared  Check  Book  of  C.  W.  Burke  and  detach,  on  the  dotted  lines,  the 
first  check  which  is  in  form  and  figures  as  follows: 

*       ■■  o 


BALANCE    BROUGHT   FORWARD 


Deposited. 

Ck  No  2. 
In  favor  of 


-U/fZ-i^. 


. /9/_ 


Amount  of  Bill    or"l  i^-^C?^ 

Payment  to  be  made  j 

Discount, % .         J5 


Amount  of  Check 
Balance 


Collx:gk  Citv.  Y    S. 


tCfje  (§arbm  Citp  33an6 


^Z-^:^^ 


UOIJ^AKS 


(a)  Observe  carefully  how  the  stub  record  is  filled  out  and  the  amount  of  the  check 
extended  under  the  deposit.  Place  this  check  in  Filing  Envelope  No.  5,  Vouchers  for  Others, 
which  signifies  that  you  have  paid  it  out,  and  detach  the  receipt  for  rent.  Form  i,  found  on  the 
first  page  of  your  Prepared  Blanks.  Then  study  carefully  the  effect  of  the  transaction  as  illus- 
trated on  your  detached  page  of  accounts  by  the  items  numbered  2  in  the  squares  marked  A  and 
E.  Observe  that  a  value  has  moved  out  of  Cash  into  the  expenses  of  the  business  as  repre- 
sented by  the  Expense  account;  and  that  Cash  therefore  shows  a  credit,  or  entry  on  the  right 
side,  and  Expense,  a  debit,  or  entry  on  the  left  side.  When  you  understand  the  transaction 
thoroughly,  copy  the  journal  entry  which  follows  into  the  journal  next  following  the  entry 
already  copied,  but  leaving  two  blank  lines  between  entries^, 

(b)  Observe  that  in  making  this  entry  in  the  Journal,  the  first  line  of  the  explanation  is 
indented  twice  as  much  as  the  credit  line  of  the  entry.  This  is  a  good  rule  from  the  standpoint 
of  neatness  in  all  cases  in  which  the  explanation  will  be  more  than  a  line  in  length. 

File  the  receipt  which  you  detached  from  your  Prepared  Blanks  in  Filing  Envelope  No.  2  and 
ask  your  teacher  to  explain  anything  that  you  do  not  clearly  understand. 


z'  ^a 


/^a 


14.     Mr.  Burke  has  bought  the  balance  of  a  small  stock  of  goods  that  were  being  sold  out 
in  the.  store  he  has  just  rented.     The  journal  entry  is  as  follows: 


1.  Being  deposited  subject  to  check  it  can  only  be  drawn  out  by  check. 

2.  To  Separate  Between  Entries  in  the  Journal,  we  believe  that  the  simplest,  neatest,  quickest,  and  al- 
together most  satisfactory  method  is  the  omission  of  two  lines  as  above  indicated.  Formerly  business 
colleges  taught  the  omission  of  one  line  with  a  ruling  across  the  wide  column  in  red  ink.  No  up-to-date 
business  college  or  text  teaches  that  method  today  for  the  reason  that  the  red  line  ruling  serves  no 
useful  purpose,  and  hence  wastes  time  for  which  no  thrifty  employer  is  willing  to  pay.  Omitting  one 
line  without   the   ruling   does   not   ordinarily   make   a     suflBcient  break  to  be  easily  recognized  by  the  eye. 


CAMPBELL'S    ACTUAL    ACCOUNTING 


^^-*Z-<ir^C^ 


4^^ 


~^^^^y$^^^^^<=Ci^.^r4^ 


y<r<^a 


y^aa 


Again  you  will  turn  to  C.  W.  Burke's  check  book  and  detach  the  prepared  check  No.  2 
noting  carefully  the  filling  of  the  stub  record  and  the  subtraction  of  the  amount  of  the  check 
from  the  preceding  balance.  Observe  also  the  effect  that  this  transaction  will  have  on  your 
accounts  as  illustrated  on  your  detached  page  by  the  items  numbered  j,  in  the  squares  marked 
A  and  C.  Have  you  more,  or  less,  cash  than  vou  had  before?  More,  or  less,  merchandise?  Do 
the  facts  agree  with  the  record  as  shown  on  your  detached  page?  Do  you  understand  that  the 
upper  (or  debit)  line  of  the  journal  entry  above  indicates  1,500  on  the  left  (or  debit)  side  of  the 
Merchandise  account,  the  same  as  the  record  on  the  detached  page ;  and  that  the  lower  or  credit 
line  of  the  entry  indicates  a  credit  for  Cash?  If  these  points  are  not  clear  consult  your  teacher; 
if  they  are,  proceed  to  copy  the  entry  into  the  journal  omitting  two  lines  between  this  entry  and 
the  last  as  before. 

15.  Detach  from  your  pad  of  Prepared  Blanks,  Form  2,  the  invoice  of  merchandise  from  the 
Pillsbury  Company  of  Minneapolis,  numbered  i-P  in  the  red  form^  on  the  upper  right  hand  corner 
of  the  invoice,  observing  that  it  is  identical  with  the  bill  presented  below,  and  place  it  before  you 
as  you  study  the  journal  entry  which  follows  it. 


For  it!  2 


INVOICE 


Pillsbury  Flour  Mills  Oompainjy 


RECEIVED^J^?f?r»«'.^.  .19? 

NO   AND  FILE  LETTERi^jJf. 


TerDS:  Rat    Cash   Jan.    10 


Branch.     College  Center,  Y.  S.,  majkstic  uldg. 


NAME  AND  ADDRESS 


lE/11 


3476 


Deo. 11 


C.  W.  Barke, 

College  City,  Y.  'S. 


225 


brls 


PlllBbury'e 
Beat 


5.00 


1126 


NO  CLAIMS  ALLOWED  AFTE 

Our  Products  guaranteed  under  the  Food  Act, 


R  FU 

Juna  30th 


ILL  R 

1906,  U. 


e:ceift 


El 

>.  Serial 


IS  SIGNEID 

umber  4499. 


//2.S 


//2.S 


Observe  the  result  of  this  "move"  in  business    as    illustrated    on    your    detached    page    of 
accounts  by  the  items  numbered  4,  in  red,  in  the  squares  marked  C.  and  /.    Compare  the  journal 

1.     This  form  is  stamped  on  the  invoice  by  the  receiving  clerk  with  a  rubber  stamp.    It  should  be  approxi- 
mately uniform  in  position  on  all  invoices  and  is  sometimes  placed  on  the  back. 


lO 


CAMPBELL'S    ACTUAL    ACCOUNTING 


entry  of  this  transaction  with  that  in  14  and  observe  that  this  value  comes  from  the  Pillsbury 
Flour  Mills  Company,  which  gets  the  credit.  Copy  this  entry  into  the  journal  omitting  two  lines 
as  before  and  observing  that  the  date  of  entry  and  the  page  of  the  journal  appears  in  the  red  ink 
form  on  the  upper  right  hand  corner  of  the  invoice.  This  invoice  is  now  ready  for  filing.  Place  it 
in  your  Invoice  File,  Envelope  No.  3. 

Invoice  of  the  Armour  Packing  Company^. 


i<orm    a 

C,  W.  Burke, 

Deo.    11 

.    191 

RECEIVED 19 

ENTERED 

NO    AND  FILE  LETTER 

College  City,   Y.   S. 

SHIPPING  REPORT 

NUMBER 

<2_i:&==^ 

781    F 

"^^M-  mmnss^m^     3^^ 

GENERAL  OFFICES 

UNION  STOCK  YARDS 

or  i  Cash,  Hote  60d 

9ws^^j,iissn9m 

PAYABLE  IN 

CHICAGO 

OR 

NEW  YORK 

Jan.   10  dating 

EXCHANGE 

CHICAGO  BANKS  CHARGE  FOR 

COLiECTING  OUTSIDE  CHECKS 

50)2f24/l     Star  Sliced  Bon 

IOOD0Z 

2  45 

245  00 ' 

150/^24/1  VB  Corned  Beef 

3OODOZ 

1   70 

510  00 

^0^24/1     VB  Roast  Beef 
25izr24/i     VB  Chili  Con  Carne 

lOOBoz 

'r, 

170  00 

5OD0Z 

42   50 

100fir24/1  VB  Corned  Beef  Haah 
^^f(24/i    VB  Chicken  Loaf 

200Doa 

1  65 

330  00 

30D02 

1  80 

54  00 

20;[r24/1     VB  Roast  Mutton 

40Doa 

1   80 

7£  QO 

82   50 

25^4/1     VB  BnlB.  Pigs  Feet 

50D0Z 

1  65 

20^4/1     Columbia-  Bologna 

40D0Z 

2  00 

80  00 

lOBple       150  Star  Hams 

2125 

12i 
22} 

265  63 

IBac            37  Star  Bacon  Narrow 
1Cyt4/5     VB  Sliced  DBflnside 

101 

22  73 

20 

29 

5  60 

1880  16 


Prepaid  Freight 


C  &  A 

16.  Two  other  invoices  are  handed  you  at  this  time  for  entry,  one  from  the  Armour  Packing 
Company  of  Chicago,  a  copy  of  which  is  shown  above  and  a  second  from  the  Pillsbury  Flour 
Mills  Company  of  Minneapolis.  Detach  these  bills,  Forms  3  and  4,  from  your  Prepared  Blanks 
and  observe  that  both  invoices  of  goods  have  been  bought  in  advance,  as  was  the  one  that  you 
have  just  entered.  Observe  that  one  is  January  loth  dating^,  and  may  be  paid  one-half  in  cash 
with  a  note  at  60  days  for  the  balance  or  may  run  30  days  on  account.    The  other,  without  any 

1.  The  above  invoice  was  prepared  in  the  office  of  the  Armour  Packing  Company  for  the  use  of  this 
text  and  is  the  form  used  by  them  in  billing  out  their  goods,  the  only  modification  made  for  text-book 
purposes  being  in  the  terms.  The  following  translation  of  abbreviations  may  aid  the  student  in  inter- 
preting the  others:  50c  24/1,  Fifty  cent  grade,  twenty-four  one-pound  cans  in  a  case;  Ben.,  bacon;  Bnls., 
boneless;    DBf.,  dried  beef. 

2.  Dating.  It  is  a  custom  of  houses  in  some  lines  of  goods  (not  usually  groceries)  when  orders  have 
been  received  (as  they  often  are)  months  before  the  goods  are  wanted,  to  note  on  the  bill,  besides  the 
date  on  which  bill  is  rendered,  a  dating  from  which  the  time  discounts  are  to  be  computed  or  on  which 
a    cash    bill    matures.     Jamiary   10th    dating    means    to  count  the  time  from  January  10th. 


CAMPBELL'S    ACTUAL    ACCOUNTING 


II 


dating  except  the  date  of  the  invoice,  is  billed  at  60  days  less  2%  for  cash   in  30  days.     Note 
carefully  the  wording  of  the  terms  on  each  bill. 

The  journal  entry  for  the  invoice  of  the  Armour  Company  is  as  follows : 


/  8^ta 


/^ 


/g^ta 


/^ 


The  second  invoice  from  the  Pillsbury  Flour  Mills  Company  will  be  entered  exactly  as  was 
the  first  invoice  in  15,  except  that  the  line  of  explanation  will  read,  Inv.  j-P,  60  das.  2-^0  cash. 
Make  this  entry  in  your  journal,  omitting  two  lines  between  it  and  the  one  preceding,  as  before. 
These  invoices  are  now  ready  to  be  indexed  for  filing.  In  the  red  ink  form  on  the  upper  right 
hand  corner  of  each,  write  the  date  of  entry,  the  page  01  the  journal  on  which  entry  has  just 
been  made,  and  the  number  and  filing  letter  of  each  invoice,  2-A  and  j-P  (see  Sec.  14  for  form) 
and  file  both  invoices  by  placing  them  in  your  Invoice  File,  Envelope  No.  3.  Now  study  your 
detached  page  of  accounts,  comparing  the  record  shown  there  opposite  the  red  numbers,  5  and 
6,  in  the  squares  marked  C,  J,  and  K,  with  the  two  journal  entries  you  have  just  made.  Observe 
that  in  both  cases  Merchandise  has  received  the  values  which  have  been  furnished  by  the 
Pillsbury  Flour  Mills  Co.,  and  the  Armour  Packing  Co.,  respectively.    See  footnote  i. 

17.  Passing  over  the  intervening  dates,  as  it  is  the  purpose  of  this  practice  to  illustrate 
certain  entries  rather  than  to  present  all  the  consecutive  transactions  of  the  ordinary  business  of 
a  firm,  we  come  to  January  7.  An  auction  sale  of  the  stock  of  A.  R.  Kay  &  Co.,  bought  on  begin- 
ning business,  brings  fifteen  hundred  and  eighty  dollars  and  is  entered  in  the  journal  at  the  top 
of  the  second^  page,  as  follows  : 


L:^^^^-:?>2^-^^:^tcE--^-^ 


Z  /^/- 


/:rr^^ 


/d-g^ 


1.  While  the  separate  entries  for  the  respective  invoices  are  the  proper  form  for  the  student  at  this  stage 
of  his  work,  an  experienced  bookkeeper,  if  he  had  occasion  to  make  these  entries  in  a  journal  form  would  prob- 
ably combine  the  three  invoices  in  the  one  entry  as  follows: 


Merchandise 


Pillsbury  Flour  Mills  Co.  Inv.  1-P 

Net,  Cash. 
Armour  and  Company,  S-A,  1-10  net, 

1-2  cash,  bal.  note  60  das. 
Pillsbury  Flour  Mills  Co.  Inv.  S-P 

60  das.  2-30  cash. 


16 


1  125 
1  880 
5  315 


16 


What  difference  would  the  combined  entry  make  in  the  figures  on  your  detached  page  of  accounts? 

2.  If  your  journal  pages  are  not  already  numbered  turn  back  and  put  the  page  number,  1,  on  the  u^per 
outside  corner  of  the  page  that  you  have  just  finished  and  the  page  number,  2,  on  the  upper  outside  corner 
of  this  page.    Be  careful  to  keep  your  journal  pages  numbered  consecutively. 


12 


CAMPBELL'S  ACTUAL  ACCOUNTING 


Observe  that  the  date,  January  7,  is  written  on  the  blue  line  at  the  top  of  the  page  and  make 
it  a  rule  of  your  journalizing  to  always  keep  the  date  at  the  top  of  every  page.  When  a  change 
of  date  occurs  in  the  body  of  any  page  it  is  indicated  as  shown  in  the  entry  for  the  next  transac- 
tion discussed  in  19.  Observe  the  effect  of  this  transaction  in  the  transfer  of  values  in  your  busi- 
ness as  illustrated  on  your  detached  page  of  accounts  by  the  items  numbered  7,  in  the  squares 
A  and  C.  Make  journal  entry;  then  detach  from  your  Prepared  Blanks,  Forms  5,  6,  7,  and  the 
envelope  of  currency  following,  observing  that  they  represent  the  proceeds  of  the  auction,  and 
place  them  in  your  cash  drawer,  Envelope  No.  i. 


18.     To  make  a  Bank  Deposit  fill  out  a  deposit 
ticket  like  the  one  shown  herewith,  observing: 

1.  That  currency  is  entered  by  itself;  so  also 
if  you  have  gold  or  silver,  the  sum  of  each 
class  of  coin  is  entered  separately. 

2.  That  the  check  on  the  Garden  "City  Bank 
(in  which  you  deposit)  is  entered  by  the 
name  of  the  maker. 

3.  That  the  check  on  the  College  City  Bank, 
your  own  city,  is  entered  by  the  name  of 
the  bank. 

4.  That    the     check    on    the     West     Baden 
National  Bank  of  West  Baden,  Indiana,  is 
listed  by  the  name  of  the  city  and  bank. 
(a)     From  the  above,  deduce  the  following 
principles  to  apply  to  all  deposits : 

(i)    List   gold,   silver,  and   currency,   each  by 
itself. 

(2)    List  all  checks  separately. 

(a)  Those  on  the  bank  in  which  you 
deposit  by  the  names  of  the  makers. 
(&)  Those  on  other  banks  in  the  same 
city  by  the  names  of  the  bank, 
(c)  Those  on  banks  outside  of  your 
city  by  the  name  of  the  bank  and  the 
city.  This  also  includes  bank  drafts.  In- 
dividual drafts  will  be  considered  later. 


I'orm   8 


e^^SilTtl^  ^' 


^ 


WITH    TH  e 


^^m  ®fe  Wmhs^ 


3!*5>. 


College  City 


'J^^^Z' 


XQ/^ 


Currency 
Gold 


Silver 


Ch  ECK «;  ^^^^^'jy'^o^^/^^'L^f-d. 


I  ^^^^:£2,^y^»*z^^ 


SjTS  ys- 


/:i^^s- 


SOC 


^^d> 


y^fo 


(3)  In  your  school  work,  list  all  checks  drawn  on  the  bank  in  which  you  are  depositing,  by  the 
makers'  names,  alphabetically  arranged.  While  no  receiving  teller  will  ever  reject  a  de- 
posit because  it  is  not  arranged  as  directed  above,  but  will,  in  fact,  in  a  country  bank,  make 
out  the  ticket  himself  for  ignorant  people,  or  those  unaccustomed  to  business^,  all  bankers 
will  appreciate  having  deposit  tickets  made  out  as  above,  and  you  are  here  to  learn  how  to 
do  business,  not  how  to  let  others  do  it  for  you.  The  preceding  instructions  were  submit- 
ted for  criticism  to  a  careful  bank  teller  who  approved  every  point  in  the  original  manu- 
script and  added  the  last  two  words  in  18,  4,  insisting  that  one  could  not  be  too  careful  in 
the  description  of  the  items  in  making  a  bank  deposit. 


1.     In  the  large  busy  banks  of  our  cities,  persons  who  are  not  able  to  make  out  their  own  deposit  tickets 
will  be  sent  to  another  window  or  to  a  separate  room  where  there  is  a  clerk  employed  to  assist  them. 


CAMPBELL'S    ACTUAL    ACCOUNTING 


13 


(b)  Detach  from  your  Prepared  Blanks,  Form  8,  observing  that  it  is  a  blank  deposit  ticket, 
similar  to  the  one  presented  in  18  preceding;  then  take  from  your  cash  drawer  the  checks  and  the 
envelope  of  currency  taken  from  Prepared  Blanks  as  instructed  in  17,  and  prepare  a  deposit  ticket 
in  exactly  the  same  form  as  the  preceding.  Count  the  currency  carefully,  observing  that  the  larger 
pieces  represent  dollars  and  the  smaller  pieces  cents.  "Paper  money"  in  form  and  general  appear- 
ance similar  to  the  larger  pieces  of  college  currency,  is  so  universally  in  circulation  in  all  the 
country  outside  of  California  that  the  student  will  very  readily  realize  that  these  pieces  are  intended 
to  represent  dollars ;  but  only  the  older  teachers  or  the  parents  or  grandparents  of  the  students 
will  remember  the  time  when  "fractional  currency,"  small  bills  very  much  of  the  same  general  size 
and  shape  and  in  the  same  denominations  as  the  smaller  pieces  used  as  cents  in  college  currency, 
were  in  general  circulation,  hence  this  word  of  explanation  has  been  found  necessary  with  many 
pup'ls. 

(c)  When  your  deposit  ticket  is  prepared,  copy  it  on  the  flyleaf  (or  on  the  back  of  the  pre- 
ceding stub)  of  the  check  book.  In  this  instance,  this  is  done  for  you,  but  you  will  turn  to  Mr. 
Burke's  check  book  and  observe  closely  the  manner  in  which  the  items  of  the  deposit  ticket  are 
copied  and  the  total  entered  as  a  deposit. 

(d)  When  this  is  done,  take  the  checks^  and  observe  that  Mr.  Burke  has  endorsed^  each  of 
them  For  Deposit,  signing  his  name  exactly  as  it  appears  on  the  face  of  the  check  that  is  made 
out  in  his  favor,  and  as  it  appears  in  the  former  endorsements  on  the  other  two.  Now  take  your 
deposit  ticket  with  the  checks  and  currency  and  Mr.  Burke's  pass  book  to  your  teacher,  who  will 
act  as  banker  in  receiving  your  deposit. 

19.  January  10.  This  being  the  date  on  which  the  invoice  entered  in  15  is  due  as  per  the 
terms  of  the  entry,  take  th'e  invoice  (numbered  i-P)  from  the  Invoice  File,  and  from  C.  W. 
Burke's  check  book  detach  the  prepared  check  No.  3.  Observe  that  it  is  in  favor  of  the  Pillsbury 
Flour  Mills  Co.,  and  that  its  effect  when  delivered  will  be  to  transfer  cash  from  your  account 
in  the  bank  to  this  company.  See  items  numbered,  8,  in  the  squares  marked  A  and  /  on  your 
detached  page  of  accounts,  and,  omitting  one  blank  line,  enter  the  new  date  on  the  second  line 
and  make  your  journal  entry  as  follows: 


"10- 


:^S^:^^*^^.=-^  ^2-*.^^ -^^*:*^  ^^1=^ 


//26  - 


//A^y- 


Deliver  the  check  (after  completing  your  entry  as  above)  to  the  Pillsbury  Flour  Mills  Co.,  by 
placing  it  in  Envelope  No.  5,  Vouchers  for  Others.  Then  take  the  Invoice  i-P,  write  on  the  face 
of  it  as  shown  on  the  form  on  the  following  page,  Paid  i-io  by  check  No.  5  and  return  it  to  its  place 
in  the  Invoice  File,  Envelope  No.  3.  In  business  a  "PAID"  stamp  usually  takes  the  place  of  this 
writing. 


1.  You  will  observe  that  one  of  these  checks  is  made  directly  in  favor  of  C.  W.  Burke,  while  two  others 
are  endorsed  to  him  by  the  "original  holders."  See  the  first  endorsements  on  the  back  of  the  check  for  $500 
and  $400,  respectively.  The  one  check  made  out  directly  in  favor  of  Mr.  Burke  by  Levin  Bros,  is  probably 
for  the  total  of  Levin  Bros.'  purchases,  but  the  other  checks  were  probably  turned  in  to  pay  smaller  purchases, 
the  difference  being  paid  to  the  parties  in  Cash. 

2.  Endorse  means,  literally,  to  write  "on  the  back."  In  business  it  signifies  to  write  on  the  back  for  the 
purpose  of  transferring  the  paper  to  some  one  else,  or  for  the  purpose  of  guaranteeing  payment.  Mr.  Burke 
endorses  these  checks  for  the  purpose  of  transferring  them  to  the  bank,  which  will  place  the  amount  of  the 
checks  to  his  credit  the  same  as  the  currency. 


14 


CAMPBELL'S    ACTUAL    ACCOUNTING 


Form  2 


INVOICE 


PiLLSBURY  Flour  Mills  Company 

Tormstliet   Cash  Jan.    10  Branch.        College  Center.  Y.  S..ma.tkstic  uldg. 


RECEIVED    B€*'»%^  Jt  \9  f:  . 
entered:  ^1— rVr.,,/',- 

NO    AND  Fire  letter  ^^ 


nonNKK   PKNNRVL.V 


wtctirr  IN  TMr«  orgj^iL 


12/11 


3476 


Deo. 11, 


NAME  AND  AUURCSS 


C.   W.    Barks, 

College  Cliy,  T.   S. 


tr^'^. 


NO  CILAIMS  ALLOWED  AFTE  R  FULL  RECEIPT  IS  SIGNED 


Car  ProdwcU  f«&rmBteMl  under  tb«  Food  Act* 


225 


brls 


1906,  U.   i.  S«i>I  r  umbvr  4499. 


Plllsbury'e 
Beat 


5.00 


1125 


20.  Take  from  the  invoice  file,  Envelope  No.  3,  the  voucher  numbered  2-A  and  observe  that 
it  is  also  January  loth  dating  and  that  payment  should  be  made  today.  From  Mr.  Burke's 
check  book,  detach  on  the  perforated  lines,  the  prepared  check  No.  4,  observing  that  both  the 
check  which  you  detach  and  the  stub  which  remains  in  the  check  book  are  identical  with  the 
forms  beneath. 


BALANCE   BROUGHT  FORWARD 


DeposHett 

Ck.  No.  .^^    Drawn. 


19^ 


/a^l9/^ 


■  In -favor  of 


For 


Amount  of  Bill,  or"l  sAS^^J^ 

Payment  to  be  made  J  ~' 


Amount  of  Check 
Balance 


38iKP 


^^a 


croLiJEGE  City.  V.  s. 


y^ 10^ 


-^ 


Erom  his  book  of  note  blanks  detach  the  prepared  note,  No.  i,  which  Mr.  Burke  has  already 
made  out  and  signed,  ready  to  be  forwarded  as  soon  as  you  have  made  the  entry.  Observe  that 
it  is  identical  with  the  form  below. 


CAMPBELL'S    ACTUAL    ACCOUNTING 


15 


Read  this  note  carefully  and  compare  it  with  the  check  that  you  have  just  detached  from 
the  check  book.  Observe  that  the  amounts  are  the  same  but  that  the  check  calls  for  cash  as 
soon  as  presented  at  the  bank,  while  the  note  is  a  written  promise  to  pay  money  at  a  future 
time,  60  ds.  after  date.  Such  a  note  is  called,  in  Mr.  Burke's  books,  a  Bills  Payable,  and  since 
he  is  able  to  use  it  in  part  settlement  of  his  account  just  as  he  uses  cash,  we  consider  that 
Bills  Payable  is  the  source  of  a  part  of  the  value  transferred  to  the  Armour  Packing  Company 
and  the  journal  entry  is  as  follows : 


^-^^^-5»T*^'^'^2S<>^-^  V^^  )^lf5»-::?:^z^^^«-i!Z-^>«^ 


/rra/d 


^^'^aaf 


^. 


^A^a 


£7/ 


Compare  the  above  entry  with  the  illustration  presented  on  your  detached  page  of  accounts 
— items  numbered  p,  in  red  ink,  in  the  squares  marked,  K^  /,  and  A — and  note  that,  as  indicated 
by  the  credits,  one  value  comes  out  of  the  cash  account  and  one  out  of  a  new  account  called  Bills 
Payable.     When  you  fully  understand  the   entry,  copy  it  in  the  journal. 

When  all  has  been  done  as  directed,  state  on  the  face  of  this  invoice,  No.  2-A,  how  payment 
was  made  as  you  did  on  invoice  i-P,  and  return  it  to  the  invoice  file.  Place  the  note  and  check 
made  out  in  favor  of  Armour  &  Company,  in  Filing  Envelope  No.  5,  Vouchers  for  Others. 

(a)  Obtaining  a  value  out  of  a  note  or  Bills  Payable  may  not  be  entirely  clear  to  the 
student  at  this  stage  of  his  work,  unless  he  imagine  that  the  note  be  given  to  a  bank  and  the 
money  thus  obtained  used  to  pay  Armour  &  Company.  Giving  the  note  to  the  Armour  Company 
will  not  seem  to  cancel  the  debt  as  indicated  by  the  debit  placed  in  the  account  of  Armour  &  Com- 
pany. But  so  great  is  the  change  in  the  form  of  indebtedness,  the  Armour  Company  now  being 
able  to  transfer  the  debt  to  a  banker  or  broker  and  actually  get  the  payment  in  cash,  that  their 
account  is  considered  "settled  by  note,"  and  Mr.  Burke  is  said  not  to  owe  them,  but  to  owe  the 
note  for  that  amount,  which  will  be  payable  to  any  person  who  may  rightfully  own  the  note 
when  it  becomes  due,  and  when  paid,  the  amount  will  be  charged  (debited)  to  Bills  Payable  in- 
stead of  to  Armour  &  Company.  Fix  it  clearly  in  your  mind  also  that  a  Bills  Payable  is  not  a  bill 
at  all  in  the  common  use  of  the  term,  but  a  written  promise  to  pay  money  at  some  future  time. 
The  term  Bills  Payable  comes  down  to  us  from  the  early  commercial  history  of  England.  If 
you  do  not  fully  understand  this  transaction  consult  your  teacher. 

21.  Taking  up  now  the  invoice  numbered  3-P,  observe  that  it  is  a  second  from  the  Pillsbury 
Flour  Mills  Co.,  and  turning  to  Mr.  Burke's  check  book  detach  the  Prepared  Check  No.  5, 
which,  with  its  stub,  appears  in  form  as  below: 


BALANCE    BROUGHT  FORWARD 


Deposited_ 


.19^ 


Ck.  No     -f     DrawnlA:Z<^^.  y^l9y 
In  fajxir  0]  ^ 


For^2. 


^-7^ 


Amount  of  Bill,  or"l  t^^t^/tna 

Payment  to  be  made  J 

Discount.      -2  % ,         S      xt-gen 


Amount  of  Check 
Balance 


COLX^GR  CITV.   V.    S.. 


NO.i£l. 


i6 


CAMPBELL'S  ACTUAL  ACCOUNTING 


Observe  that  this  check  for  $2,450,  with  the  2%  discount  allowed  him  by  the  terms  of  the 
bill,  entitles  him  to  a  credit  of  $2,500  on  account.  In  making  out  his  check  he  computed  the  amount 
he  desired  to  remit  by  discounting  $2,500,  2%.  You,  as  bookkeeper,  will  analyze  this  check  for 
entry  by  (theoretically)  dividing  the  $2,450  of  the  check  by  98/100.  Practically,  you  should 
do  the  work  by  a  shorter  method.  Add  to  the  $2,450  2%  of  itself  ($49),  then  2%  of  the  $49.00, 
which  is  98c,  and  if  you  do  not  see  by  this  time  that  the  entire  sum  is  $2,500,  continue  to  add  to 
the  $4,499.98,  2%  of  the  98c,  which  is  .0196,  or  2c,  and  the  amount  of  the  total  credit  is  known.  This 
method  will  be  found  much  shorter  than  the  method  by  division,  as  it  can  often  be  performed 
mentally  and  always  with  but  few  pencil  figures.  If  the  remittance  be  small^  $2500.00  Total  Cr. 
one  computation  of  discount  will  be  sufficiently  accurate.  The  rule  is  to  con-  ^^^^  ^^  ?/  above 

tinue  computation  as  long  as  the  result  gives  ic    or     more.     See    margin.  .02  2%  " 

The  entry  is  as  follows : 


$2450.00  net  cash. 


Jisao 

^. 


(a)  Now  study  the  items  numbered  10  in  the  square  marked  A,  Z),  and  /,  on  your  de- 
tached page  of  accounts,  and  observe  that  $50.00  of  the  value  that  is  transferred  to  the  Pillsbury 
Flour  Mills  Co.  at  this  time  comes  out  of  paying  at  the  end  of  the  first  thirty  days,  or  in  advance 
of  the  full  sixty  days  allowed  by  the  terms  of  the  bill.  Money  saved  by  discounting  bills,  that  is, 
paying  them  before  maturity,  is  said  to  come  out  of  Merchandise  Discount.  When  you  under- 
stand this  entry,  copy  it  in  your  journal,  leaving  the  usual  two  lines  between  entries,  and  deliver 
the  check  to  the  Pillsbury  Flour  Mills  Co.,  by  placing  it  in  Envelope  No.  5,  Vouchers  for  Others. 
Next,  enter  on  the  face  of  the  invoice  (it  might  be  the  back  if  necessary)  a  memorandum  of  the 
payment  as  follows : 

1-10-19. .      Remitted  by  check  No.  5, $2,450.00 

Credited  by  Discount,  2%  ,   50.00 

Total  to  our  credit $2,500.00 

The  invoice,  after  this  record  is  made,  should  appear  as  below,  and  be  returned  to  its  place 
in  the  invoice  file,  Envelope  No.  3. 


INVOICE 


Pillsbury  Flour  Mills  Compan¥ 

t«r»a}  z%  30d,  Uot  60      Branch.     College  Center,  Y,  S.,   ma.testic  bldg. 


NO    AND  FILE  LETTER   ^^ 


Draft  wben  dQ9>^ 


OORl^TKR  I*KWNBV1.VA^ 


NAME  AND  ADDRESS 


12/11 


3475 


Dec.ll^  C.  W.  Burke. 

College  City.  Y.  S. 


'y^A-^^^^^^^y^ 


116 
856 


464 
34^4 


l/8bj 
L/4- 


Pillsbury 's 
Beat 
Plllabury's 
Best 


5.75 
6.50 


667 

4708 


5375  — 


NO  CLAIMS  ALLOWED  AFTE 

Our  Product*  guarmnteed  uadvr  th«  Food  Act, 


R  FUIl-L  PgCEIFtT 

liina  SOlh, 


IS  SIGNEEP 

Itumber  4499. 


CAMPBELL'S    ACTUAL    ACCOUNTING 


17 


Note.    Observe  that  this  account  is  not  settled  In  full  by  this  transaction,  and  no  note  being  given  as  in 
19  the  balance  stands  in  the  account,  the  credit  side  of  which  is  still  the  larger. 

22.  Detach  form  9  from  your  pad  of  Prepared  Blanks,  observing  that  it  is  another  invoice 
just  received  from  the  Keystone  Company,  Chicago.  Omit  two  lines  between  entries  and  make 
the  journal  entry  as  follows,  observing  that  the  date  is  still  January  10: 


r^-y^^  a^^ 


^'^j/r 


^^vr" 


Now  observe  the  effect  of  this  business  "move"  on  your  checkerboard  of  accounts,  as  illus- 
trated in  the  items  numbered  //  in  the  squares  C  and  L.  From  what  account  is  the  value 
taken?  Into  what  account  is  it  transferred?  Observe  that  the  debit  in  Merchandise  indicates 
that  you  possess  more  goods,  and  the  credit  in  the  Keystone  Company's  account  that  you  owe  that 
much  more  debt.  The  Merchandise  shows  an  increase  of  resources^  and  the  Keystone  Company's 
account  an  increase  of  liabilities^.  As  these  balance  each  other,  there  is  as  yet  no  profit  appearing 
from  this  transaction.  Not  until  these  goods  are  sold  will  there  be  a  record  that  will  show  gain 
or  loss  according  to  the  prices  at  which  the  sale  is  made.  Turn  back  to  Section  14  and  observe 
that  the  result  of  that  transaction  is  the  same  as  this,  so  far  as  loss  or  gain  is  concerned ;  that  Mer- 
chandise shows  an  increase  of  resources  as  in  this  case,  but  that  instead  of  a  corresponding  in- 
crease in  liabilities  as  in  this  case,  there  is  a  corresponding  decrease  in  resources  in  another  ac- 
count— the  Cash,  so  that,  as  in  this  case,  there  is  no  loss  or  gain.  Look  at  all  the  entries  that  you 
have  made  except  those  in  13,  17  and  21  and  see  if  the  same  thing  is  not  true  in  every  case.  Now 
study  17  and  observe  that  the  same  stock  of  merchandise  that  was  bought  in  14  was  sold  in  17 
for  $80  more  than  it  cost;  that  the  "move"  which  took  $1,500  out  of  Cash  in  14  made  possible  the 
"move"  that  brought  in  $1,580  in  17  without  diminishing^  the  real  value  of  any  other  account  for 
the  $80.  This  shows  a  gain  of  that  amount.  You  can  put  a  certain  sum  into  Merchandise  and 
take  a  larger  sum  out,  and  yet  leave  the  same  balance  as  before  you  put  anything  in.  You  cannot 
do  this  with  Cash?    Why? 

Make  the  proper  filing  record  in  the  blank  form  on  the  upper  right  hand  corner  of  the  invoice, 
numbering  it  4-K,  entering  the  journal  page,  and  the  date,  and  file  in  Envelope  No.  3. 

23.  January  11. — Today's  mail  brings  two  orders  from  one  of  Mr.  Burke's  traveling  salesmen, 
copies  of  which  are  shown  on  the  page  following.  Detach  Forms  10  and  11  from  yoYir  Prepared 
Blanks,  observing  that  as  they  come  in,  one  is  completely  filled  out,  prices  being  entered,  exten- 
sions made  and  totaled,  while  in  the  other,  one  of  the  extensions  and  the  total  footing  is  left  blank, 
since  it  is  not  possible  for  a  salesman  to  know  the  exact  weight,  in  an  order  for  sugar  in  barrels.  Ob- 
serve that  these  blanks  are  filled  in  Mr.  Burke's  office,  as  indicated  by  the  Italics  in  the  copy  follow- 
ing, and  fill  the  blanks  in  the  detached  order  in  the  same  manner.  Leave  one  blank  separating 
line  in  your  journal  preceding  the  first  entry,  entering  the  changed  date  on  the  second  line,  and 
proceed  to  copy  the  journal  entries  shown  below  the  orders,  carefully  studying  the  transactions,  as 
illustrated  on  your  detached  page  of  ledger  accounts,  by  the  items  numbered  12  and  jj,  in  the 
squares  marked  C.  M.  and  A^. 


1.  Resources.    What  a  man  possesses,  money  or  money's  worth. 

2.  Liabilities.    What  a  man  owes  to  others. 

3.  Merchandise  appears  to  be  diminished  $1,580.00,  but  this  is  only  an  appearance.  If  an  inventory  were 
taken  at  this  time,  all  the  goods  bought  would  still  be  found  to  be  on  hand,  except  the  A.  R.  K.  stock,  bought 
at  $1,500.     Hence  the  fact  is  that  this  stock  sold  for  $1,580.00,  a  gain  of  $80.00. 


i8 


CAMPBELL'S    ACTUAL    ACCOUNTING 


(a) 


Form  10 


(b) 


Form  11 


"«  /^ 


ORDER  BLANK 
Ordered  of  C.  W.  BURKE 


Terms  tj'.gfa^.C^^  /fe^.^^         ArfH,,...Z2g,a,^^.^^.H«^>e>-^^    ^  t^ 
Salesman^/:  ^^^g'^^^^^^e^V 


ORDER  BLANK 
Ordered  of  C.  W.  BURKE 


«;^yi,Y,~^   "^V^:^^^  J^^^-^^,^^^2,^,^/.?C<>^ 


^s' 


^L2. 


/jr<^ 


^ 


7^^,^^ 


.^ 


..^^ 


..^ 


^ 


7i'ii^t<^,^!r,-tr^ ^^ 


//?g^.  ^^r^ 


.,    ^-^r^: 


S'aa*     .a^ 


-^^^^    ^    %^'^:^.    y^^*  ..9^ 


^^^>^y^   '^ /^-^xr   .^O 


•    ^^fCf-t-r-, 


/r^y^  .^Ki 


M^r  ,^^^  <C^^  ^:jSA^A^^^.uyS^J'jrZ^^^ 


•r<3 


^z_ 


^^^■^ 


_£^ 


^Z^- 


-^ 


23/a 


(c) 


-//- 


-^^^«««^»5»^,^.!^e<^^ 


/CT^ 


/J^ 


(d)     The  preceding  entry,  as  you  will  observe,  filled  the  second  page  of  your  journal ;  but 
were  a  page  not  quite  full,  yet  if  there  should  not  be  room  enough  for  the  whole  of  the  next  entry, 


2^fl'/^ 


2. 


ii^^<'-»-^K   U-^i-^.  Z^-ez^y  cTo 


2s^^/^ 


^  In  wholesale  quotations,  when  a  price  is  made  very  close  in  consideration  of  a  large  order,  fractions  of 
a  cent  in  the  price  quotations  are  very  common  and  computations  must  be  exact  to  the  major  fraction  of  a 
cent  in  the  extensions. 


CAMPBELL'S    ACTUAL    ACCOUNTING 


19 


including-  the  explanation  and  items,  you  should  take  the  entry  to  a  new  page.  Never  divide  a  jour- 
nal entry,  putting  a  part  of  it  on  one  page  and  a  part  on  the  page  following.  Observe  that  in  begin- 
ning a  new  page  the  date  is  written  on  the  light  blue  line  just  above  the  headline  on  the  top  of 
the  page.    See  17,  foot  note  2,  for  page  number. 

(e)  Observe  especially  that  each  of  the  preceding  sales  is  carefully  itemized  in  explaining  the 
journal  entry,  while  in  entering  purchases  as  in  15,  16  and  21,  the  explanation  consisted  merely  in 
a  reference  to  the  invoice  which  was  numbered  and  filed  away.  The  reason  for  this  difference  is 
that  in  a  purchase  you  always  have  the  invoice,  and  both  accuracy  and  economy  of  time  argue  for 
making  it  a  part  of  the  record,  while  in  sales,  in  many  lines  of  business,  there  is  no  evidence  of  the 
items  of  the  sale  other  than  the  record  made  at  the  time  of  the  transaction.  When  orders  come  in 
by  mail  on  the  firm's  own  order  blanks,  as  is  supposed  in  these  two  orders,  it  is  not  unusual  to  ex- 
tend the  items  on  the  order  blank  as  indicated  in  the  order  forms  (10)  and  (11)  and  to  make  these 
in  some  way  a  part  of  the  record.  A  method  for  doing  this  will  be  presented  later  in  your  work, 
also  a  method  for  combining  the  making  of  the  entry  and  the  making  of  the  bill,  which  as  a  time- 
saver  has  the  preference  in  up-to-date  business  houses ;  but  in  all  your  introductory  work  you  will 
carefully  itemize  the  sale  beneath  the  journal  or  sales  book  entry.  The  items  of  all  sales  on  account 
must  be  preserved  in  some  way.  This  is  a  cardinal  principle  of  entry.  It  is  here  emphasized  be- 
cause the  tendency  of  students  in  a  course  of  actual  practice  is  to  attempt  to  hurry  along,  entering 
the  debits  and  credits,  and  computing  the  losses  and  gains,  but  often  omitting  absolutely  essential 
items  of  detail  and  explanation.  Complete  and  accurate  records  are  the  aim  of  every  good  ac- 
countant. 

(f)  Detach  now  from  your  Prepared  Blanks  the  forms  numbered  12  and  13,  which  you  will 
observe  are  the  bills  for  these  sales  correctly  made  out,  as  in  (g)  and  (h)  following.  Study  these 
carefully,  as  you  will  be  required  to  make  out  all  future  bills  for  goods  sold,  using  these  as  guides. 
Deliver  these  bills  to  your  customers  by  placing  them  in  Envelope  No.  5,  Vouchers  For  Others, 
and  file  the  orders,  detached  Forms  10  and  11,  in  Envelope  No.  2,  Voucher  File. 

Form   1  *? 

ALL  CLAIMS  ron  SHORTAGE  OB  DAMAGE   MUST  BE  MADE  WITHIN  TWO  OAVS  mOM  RECEIPT  Or  SHIPMENT.     Rtrill  TO  ORDER  NUMSCfl 


CI)ester  W.  ilurfee 

JOBBER  IN  GROCERIES  AND  GROCERS  SUNDRIES 
COLLEGE  CITY  Y.  S. 


No-/ 


iC<7^<»^^/^..^>^i^^  // 191 


Saif^mam    (/t^     '^^A^4,      sold  rr.   ^^^^^^ZyJ^^J^ ^'<^'>^-^:^^.A4^^  '^l^^^rg-^V^^^g^^^^g-.^.z^ 


■\^^M>^yS'^^i:r^.^i-i4--^2^--^r!^^i^:Z^^ 


y(5.e^2>t^..,-^^^>^^    2^^ 


^^,r.^^$^^^-^^..^-^^jV  i^-T^  ^ZC^^^^ 


^^^^/^f- 


-f^ 


£2 


~^^^^^^^^   (gV-;*^^  >^7^ivg^^,^^  Ae^^  y  :2.^p^      ^cir^c/ 


.^^- 


.-^Z^^^-r^-^^      /)/-?:j€Au^  ;:;^^>^>^<>.g^^-.=7^-^ 


^^.^ 


.Z^ 


/^^ 


Footnotes  to   Forms  on   Preceding   Page. 

2.  The  address  of  a  customer  must  show  in  his  account  in  the  Ledger.  There  is  no  better  way  of  cer- 
tainly getting  his  address  to  the  Ledger  than  that  It  be  made  a  part  of  the  Journal  entry  when  his  first  order 
is  received.     In  loose-leaf  accounting,  it  ordinarily  appears  with  every  order. 

3.  The  initials  of  the  salesman  who  took  the  order.  In  the  loose-leaf  bookkeeping  of  wholesale  houses 
the  invoice  and  loose-leaf  salesbook  record  are  made  on  the  typewriter  at  the  same  time,  and  before  the  sheet 
is  fastened  into  the  binder  it  goes  to  a  clerk  who  takes  off  a  record  of  the  amount  to  the  credit  of  the  salesman, 
whose  name  or  initials  appear  as  above. 


20 


CAMPBELL'S    ACTUAL    ACCOUNTING 


Form  13 


ALL  CLAIMS  FOR  SHORTAGE  QR  OAMACC  MUST  BE  MAOC  WITHIN  TWO  OAVS  rROM  RECCIPT^OF.SHIPMENT       RCFCR  TO  ORDER  NUMBER 


Chester  W.  Mxht 

JOBBER  IN  GROCERIES  AND  GROCERS  SUNDRIES 
COLLEGE  CITY   Y   S 


ESMAN^2£^^k.  SOLO  Tof/  1^ X^^^^^^^T?;^-^?.^^  YIQ^ 


^ 


^i^^''^7^  // 191  _ 


Salesman 


s^^^^ — ^  -^=^ 


A^  --<ti^T^,  ^-^^-^g^>^  -J<pp^.^^.^>^^^   ■  -P^yy  3^'^^  ^-rry^    y^^pr^XX  •3^/^^^ 


.JLl. 


2jL 


.<t^. 


ya^i>Ac     ^^^ 


yy^^ 


.^/L. 


^^^^  ^^^~^:^^. 


Jk^^c j2X- 


JL. 


-^^^^.A^^  ^  ^K"^^^ 


..^ 


/^r7i^ J2/1. 


.jy^ 


^]^>^g^,  •r^yt-.c^^^  Z^^sz^ y^y>xf 


,yyr} 


_^£ 


^ 


••  " 


'gf^^^^^^^ 


'^<^<^A(.         ,  yy^ 


^^  .^^^^  ^^^^^^^^  -"Qji^^^^^^^^^j^  ^^;g^..^^^ 


..^ 


^/'>5: 


-,2^ 


:>.3/a 


j?^^^ 


Form  14 


MORGL^^N  Ebai«  Y.  S... 


Ja^^^//, 


y^ 19. 


NO..  7^^ 


OF  Morgan  HuOh 


Pay  to ^~^ ^^^^^  ~y<^^^-^^^^^ 


or  B^sffet',^^^^.?^ 


IN  COLLEGE  CURRENCY. 


Form  15 


S/^f^?-^ 


MORGAN  HUJU  Y .  S. 


\^t^^-?^,^Y^rrr, 


"yi^ 


Zi-19- 


.^*=a^=Z> 


after  date ^^.g^^^v^  promise  to  pay  to 


the  order  oL- 


^T^^^^  ^7^^^^^.  V4^^ 


.at 


The  Peoples  National   Bank, 

OF     MORGAN   BlUU  ' 


In  g«le^ootm  of  the  United  States  of  the  present  standard  value,  toitli  interest  from  ^■-zf^nZ^cSya.t.  the  rate  of  _^^,^j^g^ 
'  per  cent,  per  annum,  lvalue  received,  ■without  any  relief  whatever  from  Valuation  or  Appraisement  Laws. 


^./Ls^-^z^cyre^^  >^^^^ 


f^tf  flt».  Botbx-fkmtt  U,Jit<lMma^t9 


CAMPBELL'S    ACTUAL    ACCOUNTING 


21 


24.  January  15. — J.  C.  Dowell  &  Co.  have  remitted  for  sale  No.  2,  as  per  terms  of  the  invoice. 
Detach  from  your  Prepared  Blanks  Forms  14  and  15,  observing  that  these  are  the  check  and 
note  of  J.  C.  D.  &  Co.,  copies  of  which  appear  below  the  copy  of  the  invoice  on  the  opposite  page. 

Keep  these  before  you  as  you  copy  the  journal  entry  and  compare  it  with  the  record  presented 
on  your  detached  page  of  accounts  by  the  items  numbered  14  in  the  squares  marked  A.  H.  and  N. 
Then  place  both  the  check  and  the  note  in  Filing  Envelope  No.  i,  marked  Cash  Drawer.  The  entry 
is  as  follows : 


/2fJ 
/2f3 


or 


2sr^/<^ 


(d)  Observe  that  J.  C.  Dowell  &  Co.'s  account  is  balanced  on  your  page  of  ledger  accounts 
by  this  transaction,  very  much  as  the  account  of  Armour  &  Company  was  balanced  by  the  note 
that  Mr.  Burke  gave  in  the  transaction  in  20,  and  yet  you  are  aware  that  the  entire  bill  is  not  yet 
paid  in  money.  J.  C.  D.  &  Co.  have,  however,  given  us  a  value  in  the  note,  a  something  that  we 
can  sell  or  discount  at  a  bank  and  turn  into  money,  therefore,  something  that  is  worth  money 
to  us  and  will  mean  money  out  to  them  when  they  come  to  pay  it  at  maturity. 

(e)  Note  very  carefully  that  when  the  money  for  this  note  is  paid  to  us  by  J.  C.  D.  &  Co. 
(if  we  hold  the  note  until  maturity),  or  by  the  banker  or  broker  to  whom  we  sell  it  (if  we  sell  it), 
the  entry  at  that  time  will  debit  Cash  and  will  credit,  not  J.  C.  D.  &  Co.,  for  we  have  already  cred- 
ited them  in  full,  but  will  credit  Bills  Receivable,  because  that  is  the  source  from  which  the  cash 
will  come.   Remember  this  when  payment  of  the  note  is  made. 

(f)  Refer  back  to  20  (a)  and  compare  this  note  with  the  Bills  Payable,  discussed  in  that  sec- 
tion. Observe  that  that  note  was  called  a  Bills  Payable  because  the  proprietor  is  to  pay  the  sum 
of  money  named  in  the  note  and  that  the  note  in  this  section  is  called  a  Bills  Receivable,  because 
the  proprietor  is  to  receive  the  sum  of  money  named  in  the  note. 

(g)  Observe  the  change  of  the  hearer  to  order,  on  the  face  of  the  check.  This  is  deemed 
by  many  a  better  way  of  preventing  a  check's  being  paid  without  the  payee's  order  than  if  the 
check  were  printed  to  read  order,  for  the  reason  that  it  cannot  now  be  changed  to  bearer  without 
arousing  suspicion.  Careful  banks  always  require  the  endorsement  of  the  one  who  receives  the 
money,  even  when  the  check  is  payable  to  bearer,  but  in  the  event  of  a  mistake  the  bank  is  not 
liable. 

25.  If  you  have  carefully  and  accurately  copied  all  the  journal  entries  thus  far,  your  practice 
journal  should  appear  exactly  like  the  Model  Journal  on  the  pages  following.  If  it  does  not,  if 
any  entries  have  been  omitted,  or  incorrectly  made,  first  look  back  over  your  work  until  you  have 
discovered  the  error  and  have  seen  what  you  should  have  done  instead ;  then  consult  your  teacher 
as  to  the  best  method  of  making  the  correction. 


22 


CAMPBELL'S    ACTUAL    ACCOUNTING 


"■^^^^-^^^^z,.^^ "^^^^-^i-^^,    ^y.^^^  j^^^z-^t-z^if^i'gt.y^^  ^^  Z^/- 


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CAMPBELL'S  ACTUAL  ACCOUNTING 


23 


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24 


CAMPBELL'S    ACTUAL    ACCOUNTING 


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26.  Questions  to  Test  Your  Knowledge — Copy  the  following  questions  on  a  sheet  of  letter 
paper,  following  each  with  a  brief  answer  stating  the  point  exactly  as  you  understand  it.  You  will 
not  be  graded  on  bookkeeping  on  this  paper,  hence  you  need  not  hesitate  to  put  down  just  what  you 
think.  Do  not  ask  anyone  for  help.  Your  teacher  does  not  want  to  know  what  some  one  else  thinks 
on  these  points.  He  wants  to  know  what  you  think,  so  that  if  what  you  think  is  not  right  he  can 
help  you.  Be  careful  of  your  spelling,  your  composition,  and  your  punctuation,  for  in  all  these 
points  this  paper  will  be  criticised  and  will  be  an  important  feature  of  your  work. 

(i)     What  three  books  form  theoretically  the  foundation  of  every  set  of  double  entry  records? 

(2)  Which  of  these  are  often  combined  and  what  is  the  combined  book  called? 

(3)  What  are  the  books  of  original  entry  and  why?  Which  is  the  book  of  accounts  and  why 
is  it  so  called? 

(4)  What  is  the  rule  for  journalizing  as  given  in  this  text?  Explain  the  application  of  this 
rule  to  the  illustrative  entry  in  Section  12. 

(5)  How  is  the  debit  expressed  in  the  journal?    The  credit? 

(6)  On  which  side  of  the  ledger  account  will  the  debit  be  found? 

(7)  Explain  the  application  of  the  rule  for  journalizing  to  the  entry  in  Section  13. 

(8)  A  common  rule  for  journalizing,  often  quoted  to  beginners,  is,  "Debit  what  comes  in 
and  credit  what  goes  out."  Can  you  apply  this  rule  to  the  transaction  in  13?  If  not,  consult 
your  teacher.     It  applies,  but  is  difficult  to  explain. 

(9)  How  should  checks  be  listed  for  deposit? 

(10)  How  is  it  that  the  account  of  Armour  &  Company  balances  in  the  ledger  when  it  ap- 
pears from  Section  20  that  the  proprietor  still  owes  the  Armour  Co.  $940.08? 

(11)  What  is  a  note?  What  is  a  note  that  you  must  pay  called  in  making  entries  in  your 
books?    Why? 

(12)  When  you  pay  such  a  note  what  account  will  be  debited? 


CAMPBELL'S    ACTUAL    ACCOUNTING 


25 


(13)  If  you  owe  a  debt  of  $2,000,  on  which  there  is  a  discount  of  2%  if  paid  within  ten  days, 
how  much  money  should  you  remit  if  you  wished  to  pay  half  the  bill  within  the  ten-day  limit? 

(14)  What  is  the  meaning  of /anwary /o^/i  Z^a/mi:',  in  Sections  15  and  16? 

(15)  What  is  a  resource?  A  liability?  What  one  account,  so  far  as  you  have  studied,  shows 
a  gain?  If  you  should  put  only  $1,500  into  the  cash  drawer  could  you  take  $1,580  out?  Could 
you  in  Mdse.? 

(16)  What  is  a  note  that  some  one  else  must  pay  to  you  called  in  making  entries  in  your 
books?    Why? 

(17)  When  such  note  is  paid,  that  is,  when  you  receive  the  cash  for  it,  what  account  should 
be  credited? 

27.  Before  proceeding  further,  submit  your  copied  journal,  your  answers  to  the  questions 
in  26,  your  filing  envelopes,  and  your  text-book  to  your  teacher  for  inspection  and  approval.  If 
your  journal  work  is  not  perfect  your  teacher  will  point  out  the  weak 
points  and  you  will  recopy  it,  removing  the  soiled  pages.  Make  every 
step  of  your  work  as  nearly  perfect  as  you  can.  When  your  work  is  sat- 
isfactory, your  teacher  will  stamp  his  approval  in  the  form  to  the 
right. 

POSTING. 


FORM  FOR  TEACHER'S 


DATED  STAMP  OF  APPROVAL 


28.  Your  work  being  approved  to  this  point,  you  will  proceed  to  study  Posting,  or  the  cor- 
rect method  of  transferring  business  records  from  the  Journal  to  the  Ledger.  Take  up  Mr. 
Burke's  ledger  and  observe,  first,  that  it  is  subdivided  into  a  general  ledger,  a  customer's  ledger^ 
and  a  creditor's  ledger^,  and  second,  that  the  titles  of  the  various  accounts  have  been  writ- 
ten at  the  head  of  the  pages  or  half  pages  assigned  to  each,  respectively.  Study  the  classification 
of  accounts  as  suggested  by  the  three  divisions  and  again  the  reasons  for  the  arrangement  of 
accounts  as  they  appear  in  the  general  ledger.  Ordinarily  it  is  the  bookkeeper's  work  to  select 
pages  for  the  accounts  and  write  the  headings.  This  is  called  Opening  the  Ledger.  This  time  it 
is  done  for  you,  to  give  you  a  form  and  an  arrangement  to  guide  you  in  the  future.  While  there 
may  be  considerable  variation  in  the  arrangement  of  the  accounts,  there  is  always  a  good  reason 
for  every  proper  arrangement.  Selecting  the  pages  for  the  respective  accounts  in  a  ledger  is  not 
a  hit-and-miss  proposition. 

29.  Take  your  copied  journal  and  place  a  letter  blotter^  over  the  first  entry,  so  as  to  leave 
exposed  only  the  first  line  of  the  entry,  which  appears  as  follows : 


sa<::>£> 


Because  this  calls  for  Cash,  turn  to  the  second  account  in  your  ledger  which  is  marked.  Cash, 
and  because  the  figures,  5,000,  are  in  the  left  hand  money  column  of  the  journal,  write  them  in 
the  left  hand  money  column  of  the  ledger  account  on  the  first  blue  line  below  the  double  red 
lines  at  the  head  of  the  account.  In  the  next  column  to  the  left  in  the  ledger  account — the  refer- 
ence column — write  the  page  of  your  journal  from  which  this  item  is  taken,  and  in  the  columns 

1.  The  Customer's  Ledger  is  that  subdivision  of  the  Ledger  (usually  a  separate  book)  in  which  are  ar- 
ranged the  accounts  of  those  owing  us — called  also  our  Accounts  Receivable;  and  the  Creditor's  Ledger  is  that 
subdivision  of  the  Ledger  (usually  a  separate  book,  also)  in  which  are  arranged  the  accounts  of  those  whom  we 
owe,  called  also  our  Accounts  Payable. 

2.  Right  here  it  may  be  well  to  give  a  reason  for  the  use  of  the  letter  blotter  as  a  cover  for  one-half  of  an 
entry  while  posting  the  other  half.  The  author  in  his  experience  with  students  has  found  that  he  obtains  the 
most  accurate  results  in  posting  by  requiring  the  student  to  give  no  thought  whatever  to  the  meaning  of  the  entry 
but  to  consider  each  half  of  each  journal  entry  by  itself,  turn  to  the  account  named  in  the  entry  and  imme- 
diately write  the  figures  in  the  right  or  left  ledger  column  according  as  he  finds  them  in  the  right  or  left  of 
the  two  columns  of  his  journal.  The  object,  then,  in  using  the  blotter  as  a  cover  for  one-half  the  entry  while 
posting  the  other,  is  that  the  eye  may  not  become  confused  by  seeing  the  same  figures  in  both  the  right  and 
left  journal  columns  while  trying  to  decide  in  which  ledger  column  they  should  be  written. 


26 


CAMPBELL'S    ACTUAL    ACCOUNTING 


at  the  extreme  left,  enter  the  date  of  the  transaction,  January  2,  writing  the  year  date  above  at 
the  head  of  the  column.  The  Cash  account,  with  this  entry  correctly  posted,  will  then  appear  as 
in  the  form  below. 


^aoo 


As  soon  as  this  is  done,  blot^  the  record  you  have  just  made  in  your  ledger  and  then  write 
the  number  of  the  ledger  page  on  which  cash  is  found  (2)  in  the  column  to  the  left  of  the  jour- 
nal page  directly  opposite  the  word  "Cash,"  in  the  first  entry,  where  the  asterisk  appears  in  the 
form  above.  This  marks  that  half  of  that  entry  as  posted  and  your  first  journal  entry  should 
now  appear  as  in  the  form  below: 


2- 


^r^^ '■y^.^-i^^L^^^^    ^^^^^^.^L-^^^-eS^^ 


J"^?«^^J3 


cT^^ij? 


30.  You  might  now  change  your  blotter  so  as  to  expose  only  the  lower  half  of  the  first 
entry, ^and  post  it  as  you  have  just  posted  the  upper  half,  except  that  it  would  go  to  C.  W. 
Burke's  account  (the  first  on  page  i)  and  to  the  right  side  of  it;  but  it  has  been  found  to  be  the 
better  practice  for  the  student,  with  a  view  to  promoting  care  and  accuracy  as  well  as  to  econo- 
mizing time,  to  take  all  the  cash  on  two  opposite  journal  pages  or  even  to  take  all  in  the  entire 
journal,  while  his  ledger  is  open  at  Cash,  checking  each  item  posted,  with  the  ledger  page  num- 
ber, so  that  no  matter  when  he  may  need  to  stop  his  work,  he  will  know  just  what  is  done  and 
where  to  commence  when  he  returns.  The  objection  to  consecutive  posting,  besides  the  turn- 
ing of  ledger  pages  for  each  item,  is  the  tendency  in  the  student  to  omit  inserting  the  posting 
check  number  as  each  half  entry  is  posted.  If  these  posting  checks  are  omitted  and  the  book- 
keeper is  called  away  from  his  work,  he  must  hunt  through  his  ledger  to  find  what  is  the  last 
posted  item;  or  if  observing  that  he  has  been  omitting  the  posting  check,  he  hastily  writes  in 
several  at  once,  he  has  no  assurance  that  all  those  items  are  really  posted  as  he  thinks  they  are. 

31.  Proceeding  with  the  posting  along  the  line  indicated  (that  is  taking  all  the  cash  while 
at  cash)  the  next  cash  item  is  found  in  the  second  entry  and  is  the  latter  half  of  it.  Place  the  blotter 
this  time  so  as  to  cover  the  first  half  of  the  entry.    The  uncovered  half  reads. 


'^^-^^<:^WC' 


/^^ 


which  you  observe  is  in  the  second  or  right  hand  money  column  of  your  journal,  hence,  you  will 
write  it  in  the  right  hand  money  column  of  the  Cash  account  in  your  ledger  on  the  first  blue  line. 
Then  write  the  journal  .page,  i,  in  the  reference  column  (the  first  column  to  the  left)  and  lastly 
the  date  in  the  date  column  on  the  extreme  left.  Check  the  item  in  your  journal  by  writing  the 
page  of  the  ledger  to  which  the  item  is  posted  (2)  opposite  the  word  Cash  in  the  journal, 
where  the  asterisk  appears  in  the  journal  form  above.     Now  the  cash  account  appears, — 

1.  A  convenient  posting  blotter  for  blotting  purposes,  (the  idea  of  a  railway  accountant)  is  easily  made 
by  folding  a  common  letter  blotter  four-ply  and  attaching  it  to  the  wrist  of  the  right  hand  by  a  light  rubber 
band  so  that  about  half  of  the  folded  blotter  extends  under  the  heel  of  the  hand.  It  will  be  found  agreeable, 
since  it  takes  up  the  perspiration  and  prevents  soiling  the  books,  and  a  time  saver,  since  it  is  always  in  place. 
Without  even  picking  it  up,  it  is  just  where  you  want  it  to  blot  the  record  that  you  have  made  in  your  ledger 
before  you  turn  the  page. 


CAMPBELL'S    ACTUAL    ACCOUNTING 


27 


^ 


^a£>0 


2- 


/  -^o 


32.  Proceed  in  like  manner  until  all  the  cash  items  of  your  journal  are  posted,  watching 
carefully  for  the  change  of  date  as  indicated  by  the  figures  in  the  center  of  your  journal  pages, 
and  for  the  change  of  page  when  entering  the  journal  page  in  the  reference  column  of  the  ledger. 
Do  the  work  without  assistance  and  without  reference  to  the  detached  page  of  ledger  accounts, 
relying  entirely  on  the  printed  instructions  until  you  have  finished  posting  the  entire  journal,  in 
order  that  you  may  master  the  principles  involved.  As  a  partial  key  to  make  you  feel  sure  that 
you  have  interpreted  the  instructions  correctly,  the  Cash  account  as  it  should  appear  when  fully 
posted  is  presented  below.  Accept  no  other  assistance  until  you  have  completed  the  work.  You 
must  learn  to  rely  on  yourself. 


/^A 


/ 

7 
/s 


J^&5?^ 


a^ 


/^/  - 


2- 
2- 
/o 

/a 


//2.5 

2V^C 


ar 


(a)  The  student  has  observed  that,  in  writing  numbers  which  consist  of  an  even  number  of 
dollars,  the  author's  method  is  to  fill  the  cent's  places  with  a  dash  instead  of  leaving  them  blank 
(as  is  done  by  some  accountants)  or  filling  them  with  naughts.  Leaving  these  places  blank 
when  there  are  no  cents  tends  to  carelessness  and  the  omission  of  the  cents  when  present,  while 
filling  them  with  naughts  makes  rapid,  accurate  addition  of  the  columns  much  more  difficult. 

(b)  In  comparing  his  posting  of  cash  with  the  key  above,  the  student  will  notice  that  the 
figures  for  the  date  and  the  journal  page  are  always  written  even  when  they  might  be  indicated 
by  ditto  marks  or  might  be  omitted.  The  latter  practice  is  common  with  many  bookkeepers. 
The  reason  for  the  author's  practice  is  that  leaving  either  the  date  or  reference  column  blank, 
because  the  figure  is  already  expressed  above,  tends  to  the  omission  of  these  figures  when  the 
date  changes  and  they  should  be  expressed.  While  the  expert  bookkeeper  may  follow  the  prac- 
tice of  omitting  and  be  certain  that  he  has  omitted  no  change  of  date,  the  author  believes  that 
this  certainty  will  be  best  developed  by  the  student's  forming,  while  in  school,  the  habit  of 
writing  the  date  numbers  and,  hence,  always  noting  them  as  they  are  passed  over.  Then,  if 
omitted  in  his  later  practice,  they  will  be  omitted  purposely,  and  not  carelessly.  There  is  no  objec- 
tion to  the  omission  of  the  name  of  the  month  when  it  is  the  same  as  in  a  previous  posting,  for 
there  is  no  reasonable  possibility  of  neglecting  to  note  when  it  changes.  The  chief  objection  to 
the  use  of  ditto  marks  is  a  question  of  neatness. 

33.  When  Cash  is  correctly  posted  as  above,  turn  back  to  the  first  entry  in  your  journal 
and  as  you  pass  down  the  page,  take  up  the  first  unchecked  item.  This  is  the  second  half  of 
the  first  entry,  and  when  the  first  half  is  covered  by  the  blotter,  the  exposed  line  reads: 


^~7^-^<^.c^^i^^ 


dTtPtyA  — 


28 


CAMPBELL'S    ACTUAL    ACCOUNTING 


Turn  to  C.  W.  Burke's  account  as  proprietor  (he  has  no  other  account  in  this  ledger  at 
present,  though  he  might  have)  and  in  the  right  hand  money  column  on  the  first  blue  line 
write  the  figures,  5,000. —  In  the  reference  column  write  the  journal  page,  i,  as  before;  in  the 
wide  column  in  which  you  have  as  yet  written  nothing,  write.  Investment,  in  the  date  column, 
write  the  date  as  before,  remembering  to  write  the  year  date  at  the  top  of  the  column^.  Then  this 
item  is  posted.  Check  it  in  the  journal  by  placing  the  number  of  the  ledger  page,  i,  in  the 
journal  in  the  posting  column  where  the  asterisk  appears  in  the  form  above.  Mr.  Burke's 
account  in  the  ledger  now  appears  as  follows : 


i 


s::^^if-^'^^^-i^i^^^i^i'^^-t^ 


/ 


^CPCXP 


(a)  The  student  will  observe  that  a  word  of  explanation  is  written  in  the  wide  or  explana- 
tion column  in  this  account  while  that  column  in  the  cash  account  was  left  entirely  blank.  An 
old  form  was  to  write  in  each  ledger  column  the  name  of  the  account  that  contained  the  other 
half  of  the  entry,  a  memorandum  that  proved  in  most  cases  to  be  of  little  or  no  use.  The  en- 
deavor in  modern  bookkeeping  is  to  record  only  such  memoranda  as  will  probably  be  of  some 
future  advantage.  It  is,  therefore,  difficult  to  state  a  definite  rule,  but  the  careful  student  will,  by 
observing  the  illustrations  given  and  the  comments  made  from  time  to  time  as  he  proceeds  with 
his  work,  be  able  to  formulate  for  himself  certain  rules  which  he  will  develop  into  habits  and 
modify  by  circumstances  when  he  goes  into  business, 

34.  The  next  unposted  item  in  the  journal  is  in  the  second  entry  and  when  the  blotter  is 
placed  to  cover  the  posted  half,  it  appears,  plainly, — 


¥: 


/So 


Turn  to  the  account  in  the  ledger,  above  which  you  have  written  the  title.  Expense,  and  in 
the  left  hand  money  column,  on  the  first  blue  line,  write  the  figures,  150. — ,  being  careful  to  use 
the  proper  unit  columns,  and  to  fill  the  cents  column  with  a  short  dash  line.  Enter  the  page  of 
the  journal  in  the  reference  column  as  before ;  in  the  wide  column  write  the  memorandum. 
Rent,  January;  enter  the  date  in  the  date  column,  being  careful  to  place  the  year  date  at  the  top 
of  the  column,  and  the  posting  of  this  item  is  completed.  Check  the  item  in  the  journal  by  plac- 
ing the  page  of  the  ledger,  4,  opposite  the  journal  item  where  the  asterisk  appears  in  the  form 
above.    The    finished  ledger  record  appears : 


^^.<e^^^£^^^^<^^^ 


/ 


y^a 


35.  The  next  unchecked  item  in  your  ledger  is  the  first  half  of  the  third  entry.  Covering 
the  line  that  is  already  posted  as  shown  by  the  check  figure,  it  stands  out  clearly  with  its  figures 
in  the  left  hand  column, — 


1.  Be  sure  to  keep  the  year  date  correctly  entered  in  every  ledger  account.  It  should  be  at  the  top  of  the 
date  column,  as  in  cash  account  in  31,  or  32,  and  should  not  be  repeated  until  the  beginning  of  the  new  year, 
when  a  new  year  date  should  be  entered  in  the  column. 


CAMPBELL'S   ACTUAL   ACCOUNTING 


29 


ySao 


Turn  to  the  Merchandise  account  and  post  this  item  to  the  left  side  the  same  as  you  did  when 
posting  the  first  cash  item.  Enter  the  reference  page  and  the  date  (remember  the  year  date) 
and  check  the  item  in  the  journal  as  in  other  posting.  See  asterisk.  Proceed  to  take  in  order  the 
other  merchandise  items  found  on  your  journal  pages,  taking  care  that  you  carry  the  debit,  or  left 
hand  journal  items  to  the  left  side  of  the  ledger  account,  and  the  credit,  or  right  hand  journal 
items  to  the  right  side  of  the  ledger  account.  It  will  not  be  necessary  to  write  anything  in  the 
explanation  columns  of  the  Merchandise  account.  See  also  instructions  for  posting  Cash,  Sec- 
tions 31  and  32. 

36.  When  all  merchandise  items  are  posted  as  instructed  above,  turn  back  again  toward  the 
first  of  your  journal  and  take  up  the  first  unchecked  item.  This  will  be  the  second  half  of  the 
fourth  entry  and  when  the  first  half  of  the  entry  is  covered  with  the  blotter  it  appears  with  its 
figures  in  the  right  hand  column,  as  follows : 

(a) 


-c^^^^^.^*.:^^  ^^^-^.i^,^^^-.^^ 


//2-i-' 


Turn  to  page  11  of  your  ledger  and  find  the  account  of  the  Pillsbury  Flour  Mills  Co.  Enter 
the  figures  in  the  right  hand  money  column,  because  you  find  them  in  the  right  hand  money 
column  of  the  journal.  Enter  the  journal  page  in  the  reference  column ;  in  the  wide  column^ 
write, /wz'. /-P.  ca.y/t, /anwary  70 ;  in  the  date  columns,  place  the  date  of  the  journal  entry,  January 
2,  iQ — ,  and  check  the  entry  in  the  journal,  with  the  ledger  page,  11  where  indicated  by  the 
asterisk  in  the  form  above.     For  year  date  see  form  in  Expense  Account,  in  section  34. 

(b)  Looking  for  other  items  for  this  account  we  find  in  the  sixth  entry  a  second  credit 
which  you  will  post  exactly  as  the  item  above  except  that  you  may  place  in  the  wide  column  this 
explanation,  j-P,  6od,  2-^oc.  Dft.  This  gives  the  information  that  the  invoice  runs  60  days  from 
date,  allows  2%  if  paid  within  30  days  and  is  subject  to  draft  at  maturity. 

(c)  Looking  further  for  items  for  the  same  account,  we  find,  on  the  second  page  of  your 
journal,  a  debit, — 


:z^^^^.^..-^^  £2-^.^^ -^^-.^^  ^i^ 


//^5- 


Enter  the  figures  in  the  left  hand  money  column  on  the  first  or  upper  line  of  the  ledger 
account;  in  the  reference  column,  place  the  journal  page,  2;  and  in  the  date  column  the  date 
January  10,  with  the  year  date  at  the  head  of  the  column. 

(d)  A  little  farther  on,  in  the  tenth  entry  we  find  a  second  debit  which  you  will  post  exactly 
as  you  were  instructed  in  (c)  preceding  except  that  in  the  wide  column  you  may  enter  this 
explanation.  Cash,  $2,4^0,  Disc't.  $jo.    The  Ledger  account  should  then  appear  as  follows   : 

♦Remember  to  check  the  entry  in  the  journal  after  posting,  not  before  posting,  lest  you  be  interrupted 
after  checking  and  then  forget  to  post. 

1.  Referring  to  the  explanations  recorded  above,  the  student  should  note  that  the  credit  side  of  a  cred- 
itor's account  shows  invoices  of  Mdse.  bought,  with  scarcely  an  exception,  making  it  unnecessary  to  say, 
"Mdse.">that  if  the  terms  quoted  be  uniform  succeeding  invoices  would  only  require  the  invoice  number,  and 
If  the  Invoices  be  filed  alphabetically  instead  of  numerically  no  explanation  may  be  necessary  unless  some 
credit  occurs  that  is  not  an  invoice  of  merchandise.  On  the  debit  the  expected  item  is  cash  and,  therefore, 
were  it  not  for  such  items  as  $50.00  discount  in  36,  (d),  or  the  note  in  37,  (b),  no  explanation  would  be  neces- 
sary. None  is  needed  in  any  case  where  the  debit  is  plain  cash.  If  your  creditor  draws  on  you  (see  Section 
(56)  it  would  be  well  to  say,  "Draft,"  in  explanation,  or  if  you  had  occasion  to  return  merchandise,  the  expla- 
nation would  be  "Mdse.  returned."  But  in  most  cases  the  wide  column  in  a  creditor's  account  is  left  blank. 
This  will,  with  slight  modification,  apply  also  to  the  debtor's  (customer's)  accounts,  as  the  same  principles  of 
explanation  apply  to  all  personal  accounts  in  the  same  line  of  business. 


3© 


CAMPBELL'S   ACTUAL   ACCOUNTING 


:^S^^..:^.^  ^2^^.^  J^^:.^  ^:^ 


y>^*<r''r-'>i^^Z^^i..i!>-^tC^f  ^ 


y^/ 


/^ 
/^ 


^-y^ 


■^^.-p/(piz^r^^^^^3-ij:^  2. 


-? 


2  so  a 


2- 

2- 


vrrG?7^ — 


37.  Turning  back  to  take  up  the  unposted  item  nearest  the  first  of  your  journal,  you  find  it 
in  the  fifth  entry.  Placing  the  blotter  over  the  posted  half,  it  leaves  uncovered  the  credit  and  the 
explanation,  reading  as  follows  :  ,  . 


^^y/: 


/rr<p 


/c 


Turning  to  the  Armour  account  in  the  ledger,  enter  the  amount  on  the  first  blue  line  at  the 
top  of  the  left  hand  column.  Enter  the  journal  page,  /,  in  the  reference  column ;  in  the  wide 
column,  write  the  invoice  number,  2-A ;  in  the  date  column,  write  the  date  with  the  year  date  at 
the  head  of  the  column. 

Looking  for  other  items  for  the  same  account,  we  find  in  the  ninth  entry  a  debit  line, 


^^■'t^'i'<:f<>^---grZ^cA^^r-^^^,t:P-::^^ 


/fr^/£ 


which  we  post  the  same  as  the  debit  in  36  (c)  was  posted,  except  explanation  and  references. 
Page  2  is  entered  in  the  reference  column ;  in  the  wide  column,  A^.  $9^0,  No.  i,  i-io,  6ods;  in 
the  date  column,  the  full  date  as  it  should  always  appear  at  the  head  of  an  account.  See  Expense 
account  34,  and,  lastly,  the  journal  item  is  checked  by  placing  the  ledger  page,  11,  in  the  check- 
ing column  of  your  journal  page  where  the  asterisk  appears  in  the  form  above. 

38.     The  next  unchecked,  and  hence,  unposted  item  is  in  the  ninth  entry  and  when  the  other 
two  items  of  the  entry  are  covered  with  the  blotter,  it  appears, — 


^^ 


ar' 


It  is  posted  as  the  item  in  36  (a)  except  that  it  is  posted  to  Bills  Payable  account  on  page 
8  of  your  ledger.  The  explanation  column  should  be  filled  as  follows,  No.  i,  Armour  &  Co., 
i-io,  6od,  meaning  that  this  note  is  No.  i  in  the  bill  book,  is  given  to  Armour  and  Company,  dated 
January  10,  to  run  60  days. 

39.  The  tenth  entry  furnishes  the  next  unchecked  item  which  appears,  when  isolated  by 
the  blotter,  as  in  the  form  below : 


a/^''i-<i'-C^ii>-£i^<p^Z-^ 


<$-£> 


CAMPBELL'S   ACTUAL   ACCOUNTING 


SI 


This  will  post  as  any  of  the  credits  of  the  Cash  or  Merchandise  accounts.     Turn  to  the 
account  marked  Mdse.  Discount  on  page  3  of  your  ledger  and  post  as  you  posted  cash  credit  in 

31- 

40.     The   next  unposted   item   to  be  considered,   as   you   will   observe   by   looking   for   the 
posting  checks,  is  found  in  the  eleventh  entry, — 


6^s  /y 


Post  this  item  to  the  credit  of  The  Keystone  Company's  account  on  page  11  of  your  ledger 
as  you  posted  the  credit  of  Armour  and  Company,  in  37  (a)  to  their  account.  Explain,  Inv.  4-K. 
Net  6od. 

41.  In  the  twelfth  entry  we  find  the  next  unchecked,  hence  unposted  item.  Place  your  blot- 
ter to  cover  the  posted  part  and  you  have, 


^^4<^--<^4^:^ZI.^^^^^.,.,.2^:^^2^.^.2^_ 


?^2fez-«2^r^i5<^iS^!ie/^^ 


ysa 


Post  this  item  to  the  left  side  of  the  account  of  the  Park  Grocery  Co.,  on  the  ninth  page  of 
your  ledger,  observing  that  the  postofifice  address  is  written  under  the  title,  on  the  tripple  line 
that  heads  the  account,  and  entering  in  the  wide  column  when  posting,  this  explanation,  S.  i, 
jodas.,  Dft. 

Note — You  will  observe  that,  in  connection  with  the  explanation  of  the  entry  in  question  in  the  journal 
there  appears  the  initials  of  the  traveling  man  who  sent  in  the  order.  This  has  no  place  in  the  regular  posting 
of  entries  but  is  taken  (posted  if  you  please  to  so  call  it)  to  a  special  ledger  showing  the  total  amount  of 
business  sent  in  by  each  representative.  A  separate  record  is  thus  kept  with  each  traveling  salesman,  so  that 
when  taken  in  connection  with  his  salary  and  expenses,  the  firm  can  tell  exactly  what  it  is  costing  them  to 
get  the  business.  This  will  appear  to  better  advantage  in  the  loose  leaf  salesbook,  the  salesman's  record 
being  taken  off  before  the  leaf  is  fastened  into  the  book. 

42.  The  next  unposted  item  is  the  first  half  of  the  thirteenth  entry  and  you  will  post  it  to 
the  account  of  J.  C.  Dowell  &  Co.,  as  the  item  in  42  was  posted  to  the  Park  Grocery  Co.,  enter- 
ing in  the  wide  column  this  explanation,  S.  2.  1/2  C,  1/2  N.  jod.  6%.  When  this  is  done  observe 
that  there  is  another  item  for  this  account,  a  credit  in  the  fourteenth  entry.  This  will  be  posted  to 
the  credit  side  of  the  account  explaining,  N.,  1-15,  3od.  6%  $1,2^3.08.  The  ledger  account  will 
then  appear  as  follows : 


^^.^^^■^^.^  V^ 


x^%»^*^!^«<-«^  .^^^^iiS^    ^J&f^ 


2.sf<: 


/(> 


/^/-. 


Qia^.  /.r  1^/-/s: Sa^^^Yo-^^'-^f'^ 


^^ 


:2:rr<^  /^ 


43.     The  last  remaining  unposted  item  is  the  second  line  of  the  fourteenth  entry,  a  debit, — 


/2^3 


<?r 


Post  this  to  the  debit  of  the  Bills  Receivable  account,  entering  in  the  wide  column  this 
explanation  No.  i,  J.  C.  D.  &  Co.  i-ii,  ^od.  For  the  meaning  of  this  explanation  see  38.  Observe 
the  change  of  date  in  posting. 


♦Remember  to   check  the   entry,   in   the   journal,  after  posting,  not  before  posting. 


32 


CAMPBELL'S  ACTUAL  ACCOUNTING 


44.  Adding  the  Ledger  Accounts.  The  next  step  is  to  add  carefully  both  columns  of  each 
ledger  account  (except  columns  that  contain  but  a  single  item)  writing  the  results  in  small,  neat, 
lead-pencil  figures  close  under  the  last  number  in  the  respective  columns  without  drawing  or 
ruling  any  line  whatever.  Use  a  No.  3  or  No.  4  pencil  for  all  ledger  additions  and  keep  it  well 
sharpened,  that  your  work  may  be  neat  and  clean,  since  it  is  not  to  be  erased.  Never  use  your 
ledger  pages  as  scratch  paper  for  computations  that  are  to  be  erased.  Some  bookkeepers  make  the 
subtraction  between  the  debit  and  credit  of  an  account  in  the  wide  column  in  pencil  leaving  it 
unerased  as  shown  in  Mdse.  Account,  in  Model  Ledger  No.  2;  but  a  good  accountant  would 
make  the  subtraction  between  the  two  footings  horizontally,  writing  only  the  result  as  shown  in 
the  Cash  Account  in  Model  Ledger  No.  i,  section  47. 

45.  The  Daily  Closing — Cash.  When  the  posting  is  completed  and  the  accounts  added  as  in- 
structed in  44,  the  next  step  is  to  prove  Cash,  and  afterward  to  prove  the  accuracy  of  your  other 
work  in  posting  and  adding  by  taking  a  trial  balance .  These  two  proofs  constitute  what  is  or- 
dinarily included  in  what  may  be  termed,   The  Daily  Closing,  in  bookkeeping. 

(a)     To  prove  Cash.   The  cash  is  said  to  "prove"  or  "balance"  when  the  amount  in  the  bank 

as  shown  by  the  stub  of  your  check  book^,  added  to  the 
amount  in  your  cash  drawer  and  safe,  equals  the  difference 
between  the  two  sides  of  the  Cash  Account  in  your  Ledger. 
The  condition  of  your  bank  account  is  shown  by  the 
stub  of  the  last  check  detached  from  Mr.  Burke's  check 
book.  Turn  to  it  and  observe  that  it  appears  exactly  as 
shown  in  the  form  following.  To  the  $4i4-92  which  your 
check  stub  shows  as  a  bank  balance,  add  the  amount  of  the 
check  received  from  J.  C.  Dowell  &  Co.,  $1,293.08,  which 
you  find  in  your  cash  drawer,  and  observe  that  it  makes 
$1,708.00,  or  exactly  the  difference  between  the  two  sides 
of  the  Cash  as  it  appears  in  the  Model  Ledger  No.  i.  If 
the  cash  as  posted  by  you  to  the  account  in  Mr.  Burke's 
ledger,  on  page  2,  does  not  agree  with  this,  you  have  made 
an  error  either  in  entering,  in  posting,  or  in  adding.  To 
locate  it,  compare  the  check  book  stubs  with  the  Cash  ac- 
count to  see,  1st,  if  all  items  deposited,  as  shown  by  the 
check  book,  are  found  on  the  debit  side  of  Cash  account,  and, 


BALANCE  BROUGHT  FORWARD 

Deposited /p 

Ck.  No.^^Z-  Drawn y/J^Xt^y/y     10/ 
Infauor  of 


For  >--^2.»^^.X      ^""<^ 

Amount  of  BUI,  or^             ^  /f^r^^ 
Paynunt  to  be  made  f  ^-^^^^ 

-Diii:omtT'2fsa^de^'%       S^^yg^^ 
Amount  of  Check 


Deposited^ 

Ck  No..^ 
In  favor  o) 


Balance 


.19. 


Drawn, 


jorof  ^ 


For\=^^.^^  ^--^ 


Amount  of  Bill,  or\ 
Payment  to  be  made  j 
Discount,     -2-  ^ 


Deposited^ 

Ck.  No 

In  fauor  of 


Drawn_ 


Amount  of  Check 
Balance 

19 

/P_ 


For 

Amount  of  Bill,  or\ 
Paymtnt  to  be  made  J 
Discount, 0. 


Amount  of  Check 
Balance 


3fic 


^4/'a 


<ur 


CouLBGK  City.  Y.  .8... 


%\^t  (JIarlim  dtp  iSank 


P01.1.i»«fc 


1.  A  great  many  school  text-books  on  bookkeeping  teach  the  very  unbusinesslike  practice  of  requiring 
the  teacher  to  check  up  and  correct  a  student's  journalizing  with  the  key,  before  posting.  It  being  then  impossi- 
ble for  cash  to  be  in  error,  except  as  a  result  of  incorrect  posting  or  adding,  the  student  is  instructed  to  take 
the  trial  balance  as  the  first  step  after  posting.  A  student  so  trained  goes  into  business  with  little  instruc- 
tion, and  without  any  practical  experience,  in  "finding  cash."  As  a  rule,  every  account  that  is  to  be  verified 
independent  of  the  proof  furnished  by  the  trial  balance,  ought  to  be  proven  before  the  trial  balance  is  taken. 

2.  The  method  here  presented  for  keeping  the  bank  account  is  that  known  as  the  check  stub  method. 
Other  methods  will  be  presented  later. 


CAMPBELL'S   ACTUAL   ACCOUNTING-  33 

2d,  if  all  the  amounts  paid  out  by  check  are  found  on  the  credit  side,  checking  carefully,  in  both 
books,  each  item  found  in  both  check  book  and  cash  account.  If  any  items  of  deposit  should  not 
be  found  on  the  debit  side  of  Cash  account,  or  if  the  amount  of  any  check  drawn  and  detached 
be  not  found  on  the  credit  side  of  Cash  account,  an  entry  has  been  incorrectly  made  or  has  been 
omitted.  If  any  deposit  amount  should  be  found  on  the  credit  side  or  check  amount  on  the  debit 
side,  an  entry  has  been  reversed.  If  after  checking  all  the  items  in  the  check  book  there  remain 
some  entries  unchecked  on  the  debit  of  Cash  account,  these  should  be  matched  by  the  cash  in 
the  cash  drawer  and  safe ;  if  any  unchecked  items  remain  on  the  credit  side  they  should  represent 
cash  paid  out  of  the  cash  drawer.  Any  other  unchecked  items  are  errors.  If  there  remain  no 
unchecked  items,  your  error  is  in  addition.  If  there  are  unchecked  items  in  either  book  as  above, 
look  up  the  transaction  in  your  journal,  and  follow  it  to  your  ledger,  and  when  you  have  located 
the  error,  consult  your  teacher  as  to  the  best  method  of  correcting  it.  If  you  cannot  discover  it, 
go  over  this  work  according  to  the  preceding  instructions  several  times  before  going  to  your 
teacher  for  assistance,  because  the  error  is  there  somewhere ;  you  are  merely  overlooking  it. 

Note.  Combined  Addition  and  Subtraction.  Observe  that  the  two  checks  represented  above  are  sub- 
tracted from  the  balance  by  the  plan  known  as  Combined  Addition  and  Subtraction.  This  is  a  convenient 
short  method  for  use  at  any  time  when  a  number  of  items  are  to  be  taken  as  a  whole  from  one  minuend. 
The  subtractions  of  the  check  book  give  a  good  illustration,  but  by  no  means  the  principal  occasion  for  its  use. 
The  principal  habit  to  be  formed  by  the  accountant,  in  order  that  he  may  make  such  computations  rapidly 
and  accurately,  is  that  of  increasing  the  next  higher  order  of  the  subtrahend  instead  of  diminishing  the  next 
higher  order  of  the  minuend  when  "borrowing"  has  been  necessary.  To  illustrate,  we  will  subtract  three 
numbers  representing  checks  from  a  fourth  representing  the  preceding  balance,  as  in  margin. 

Make  the  computation  of  th6  columns  in  order,  beginning  with  the  right  as  follows:         Bal.        $45,321.75 

5  +  3+2=10,  which  from  15  leaves  5  which  is  placed  beneath.     The   one  ten  by   which   the  ■ 

units  were  increased  to  make  the  minuend  number  15  is  now  added  to  the  tens  of  the  Chks.  9,576.22 
subtrahend,  and  the  second  column  is  computed,  1+4  +  4+2=11,   which   from    17   leaves    6  8,834.43 

as  written  beneath.     For  the  third  column,  1+2+4  +  6=13  which  is  too  large  to  be  taken  8,532.45 

from  11,  so  we  increase  the  minuend  number  by  20  and  have   a  remainder,  8,   which  is  • 

written  beneath.     In  computing  the  next  column  we  begin    by    adding    2,    the    equivalent  $18,378.65 

of  the  20,  2  +  3+3+7=15,  which  from  22  leaves  7  as  written  beneath.  For  the  next  col- 
umn, making  the  combinations  as  you  should  make  them,  2,  7,  15,  20  from  23,  3  as  written  beneath.  Then  for 
the  next  computation,  2,  10,  18,  27,  from  35,  8  and  lastly,  3  from  4,  1.  Or  with  practice  the  last  two  computa- 
tions can  be  made  in  one,  viz.,  27  from  45,  18.  I 
For  additional  practice  in  combined  addition  and  subtraction,  compute  the  balances  of  the  following  ledger 
accounts  by  adding  the  columns  of  the  smaller  side  and  subtracting  each  column  result  from  the  correspond- 
ing order  of  the  footing  of  the  larger  side.  "Write  in"  the  result  just  as  it  is  obtained  and  provei  accuracy  by 
adding  the  columns  afterward  with  the  balance  Included  to  obtain  the  same  footing  as  the  one  given  for 
the  larger  column. 

2420.44  2157.46 

3659.53  1285.09 

2694.63  1638.95 
4263.12  Bal 


3678.94 

3275.90 

6427.56             2574.85 

4210.00 

2319.81 

1374.09 

1352.97 

1305.78             1438.84 

1885.00 

1417.22 

2474.83 

1605.53 

953.25               641.35 

1921.00 

1819.79 

Bal     9748.90 

2145.80  Bal 

4379.00 

Bal 

13037.72  15983.30  10832.39  12395.00 

(b)  When  Your  Cash  Proves,  make  a  pencil  record,  in  the  wide  column  of  the  debit  side  of 
Cash  in  the  ledger  as  shown  in  Model  Ledger  No.  i.  This  is  proving  Cash  without  ruling  the 
account.  (The  method  for  ruling  and  balancing  the  account  will  be  presented  later.)  Then 
make  your  bank  deposit,  depositing  the  check  received  from  J.  C.  Dowell  &  Co.,  and  leaving  the 
note  of  J.  C.  Dowell  &  Co.,  at  the  bank  for  collection^.  Your  teacher  will  place  the  note  in  your 
bank  envelope  and  make  the  proper  memorandum  in  the  back  of  your  pass  book.  (See  i8  for 
instructions  for  making  a  bank  deposit.)  Observe  that  Mr.  Burke  has  endorsed  the  check,  For 
Deposit.  Take  deposit  slip,  check  and  pass  book  to  your  teacher  as  instrticted  in  i8  (d).  The  next 
step  in  yotir  proof  is : 

46.  The  Trial  Balance.  Now  that  Cash  is  proved,  proceed  to  make  proof  of  all  other 
postings  and  additions,  by  copying  on  a  separate  sheet  of  journal  paper  the  total  debit  and  credit 

1.  He  who  would  become  an  accountant  must  learn  to  prove  every  computation. 

2.  When  you  discount  a  note  at  a  bank,  that  is,  sell  it  to  the  bank,  the  banker  enters  the  amount  in 
your  pass  book  the  same  as  a  deposit,  or  pays  it  to  you  in  cash.  When  left  for  collection,  it  is  still  your 
paper,  and  the  memorandum  referred  to  is  merely  a  receipt  acknowledging  that  you  left  such  a  note  or 
acceptance  in  the  possession  of  the  bank  for  them  to  collect  for  you.  The  memorandum  is  sometimes  made 
among  the  deposits  being  "short  extended"  and  not  carried  into  the  money  column  until  collected. 


34 


CAMPBELL'S   ACTUAL   ACCOUNTING 


of  each  account  in  the  ledger  as  shown  by  the  penciled  footings.  If  all  work  is  correct,  this  will 
appear  exactly  as  shown  below  and  should  be  copied  into  your  journal  on  page  3  below  the  last 
journal  entry.  If  your  trial  balance  does  not  prove,  carefully  compare  your  journal  with  the 
Model  Journal  and  your  ledger  with  the  Model  Ledger  to  discover  your  error,  and  consult  your 
teacher  as  to  manner  of  making  the  correction  if  you  find  it  in  this  part  of  your  work.  If  the 
error  is  not  found  here,  then  it  must  be  in  your  additions,  either  of  the  ledger  or  of  the  trial  balance. 
Comparing  your  work  with  the  key  to  find  a  mistake  is  not  the  author's  method  of  finding  mis- 
takes. That  will  be  presented  later.  Your  work  in  this  part  of  the  subject  having  been  al- 
together that  of  copying,  comparing,  and  studying  entries  and  forms  that  have  been  set  before 
you,  it  is  not  inappropriate  that  in  this  closing  you  should  be  permitted  to  discover  errors  in  the 
same  manner ;  but  in  correcting  an  error  be  sure  that  you  know  the  reason  and  never  make  any 
change  from  your  own  idea  simply  "because  the  book  says  so." 


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(a)  To  Prove  Agreement  of  Check  Book  and  Pass  Book.  Ask  your  teacher  to  "write  up" 
your  pass  book,  and  when  this  is  done,  take  the  returned  checks,  and  check  them  off  with  the  stubs 
of  your  check  book,  check-marking  (  v')  on  the  check  stub  all  that  are  returned.  Then  make  a  list  of 
those  that  do  not  check,  and  the  sum  of  their  amounts  added  to  the  bank  balance  as  shown  by  your 
check  book  should  give  the  bank  balance  shown  by  the  pass  book.  When  this  proves,  copy  the  list 
of  "checks  out"  on  the  back  of  your  check  stubs  opposite  your  last  check  drawn,  and  show  the  agree- 
ment by  adding  in  the  balance  per  check  book  and  marking  the  total,  Balance  per  Pass  Book.  For  a 
second  proof  you  will  commence  to  check  off  returned  checks  at  the  head  of  the  copied  list. 

47.  Now  that  your  posting  is  completed  and  your  ledger  proven  by  taking  the  trial  balance, 
its  accounts  should  be  exactly  like  the  accounts  in  Model  Ledger  No.  i  presented  on  the  pages 
following: 


*The  pages  of  the  Ledger. 

2.  When  accounts  balance  as  the  two  marked  above,  the  practiced  accountant  always  leaves  them  out 
of  the  trial  balance  as  they  will  not  alter  the  result  and  will  save  a  great  deal  of  work  if  there  be  many  of 
them.  The  beginning  student  will,  however,  for  a  reason  that  will  be  easier  to  explain  later,  find  it  much  to 
his  advantage  in  finding  mistakes  in  his  balances  if  he  make  it  his  rule  to  copy  the  penciled  footings  of  all 
accounts  that  are  not  ruled,  into  the  trial  balance. 


CAMPBELL'S    ACTUAL    ACCOUNTING 
MODEL  LEDGER  NO.  i. 


35 


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36 


CAMPBELL'S    ACTUAL    ACCOUNTING 


MODEL  LEDGER  NO.  i— (Continued.) 


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CAMPBELL'S    ACTUAL    ACCOUNTING 


37 


48  (a).  Detach  from  your  Prepared  Blanks,  Form  16,  and  fill  it  out  carefully,  first  working 
out  the  entire  report  on  scratch  paper  that  there  may  be  no  errors  in  your  report.  Then  dust 
your  books  carefully,  and  placing  your  check-book  in  your  ledger  at  the  Cash  account,  and  your 
ledger  in  your  journal  at  the  place  where  the  trial  balance  is  recorded,  submit  all  books  and  your 
filing  envelopes  to  your  teacher  for  approval.  While  your  teacher  is  approving  your  report,  you 
will  proceed  with  the  following: 

RULING  PRACTICE. 
(b)     One  of  the  important  points  in  neat  bookkeeping  is  neat  rulings,  and  one  of  the  weak- 
est points  in  the  beginner  is    in    ability  to  do  neat  ruling.    You  have  not  so  far  in  your  work  had 
any  occasion  for  red  ink  rulings,  but  in  the  next  closing  of  your  books  there  will  be  a  number 
of  accounts  that  will  require  ruling.    That  you  may  be  prepared-  for  this  work,  take  a  sheet  of 

ledger  paper  and  practice  the  following  ruling  exercise  until  you 
have  made  a  perfect  page  which  you  will  take  to  your  teacher  to 
be  filed  for  reference  with  your  other  records  of  work.  As  this 
will  be  a  part  of  your  exhibit  when  specimens  of  your  work  are 
desired  by  possible  employers,  it  is  unnecessary  to  emphasize  the 
importance  of  practicing  until  the  page  is  perfect.  Place  your 
ruler  on  the  paper  parallel  to  your  chest,  and  with  the  ruling  edge 
up  from  the  paper  and  away  from  you.  If  the  ruling  edge  touches 
the  paper  it  will  take  ink  from  the  pen  point  and  blot  your  work. 
If  there  is  at  any  time  a  great  deal  of  ruling  to  be  done,  it  will  be  advantageous  to  use  a  drawing 
(c) 


1 
z 

Note. — 1.    Addition  Lines.     2.       Closing  Lines.     Observe  that  addition  lines  cross  the  money  columns  only; 
that  the  double  closing  lines  cross  the  entire  page  except  the  wide  explanation  column. 


38 


CAMPBELL'S    ACTUAL    ACCOUNTING 


pen,  both  in  the  interest  of  time  and  neatness,  but  since  the  common  pen  is  most  convenient  to 
the  bookkeeper  and  the  work  usually  consists  of  but  one  or  two  lines  at  a  time,  the  common  pen  is 
principally  used,  and  with  such  a  pen  you  will  prepare  this  page  of  ruling  practice.  Hold  your 
pen  vertically  and  with  the  flat  at  right  angles  to  the  ruler.  The  single  red  line  should  be  placed 
exactly  on  the  light  blue  line  of  the  paper,  and  of  double  lines,  the  upper  should  be  on  the  light 
blue  line  and  the  second  line  about  one-thirty-second  of  an  inch  lower.  To  make  this  second 
line  do  not  move  your  ruler,  but  change  the  location  of  your  pen  point  by  inclining  the  top  of  the 
holder  a  little  farther  from  you. 

(d)     When  your  books  and  your  page  of  ruled  work  are  approved,  copy  your  report  into  the 
form  below  and  submit  it  to  your  teacher  to  be  stamped  before  proceeding  with  your  work. 

Form  16 

Cash  Balance  in  Ledger, $ In  Bank,  per  Check  Book, $ 

Notes  received,  Number, $ Invoices  bought,  Number, $ 

Orders    filled,    Number, $ Receipts    taken.    Number, $ 

Outgoing  Papers. 

Checks  paid  out.  Number, $ Teacher's 

Bills    rendered.    Number $ Stamp  of 

Notes     given.     Number, $ Approval 


Form  17 


iNo  \y 


ORDER  BLANK 
Orderedof  C.W.  BURKET 


Tf  rmi  -^<r?r  ^^-^  ^^^:>^      \AAt<M  yfi-Xr^AjlM^  ^.^r^ 
Salesman      ,  P  T^'^^^J^^^^y . 


-/^^^■^yl^tt^^.  jt^Le^-^Kzyj^.  ^^Sjt,  i^.^ 


7^.2^ 


.  3  -^^  ^  ^  ^^.>.^^;Lr,^>a^^  'Zlays-o^.33 


^c^£e_ 


/^^  v^.^  <^^.  Yxx x(,^.^^^iJ^^.^2r. 


^£^^ 


^^^  jlr7^A^a^^  ■/^^^  /^^^         .^3 'a 


:2.Z2^ 


49.  Detach  from  your  prepared  blanks,  Form  17,  an  order  for  Merchandise  from  McConnell 
&  Co.,  Fairfax,  as  shown  below. 

Make  out  the  bill  and  make  entry  as  in  the 
sale  to  J.  C.  Dowell  &  Company,  section  23 
(b),  (d),  (f).  Leave  two  blank  lines  between 
your  last  journal  work  and  this  entry.  Place 
the  sales  number,  j,  on  the  order,  on  the  bill 
and  again  in  the  explanation  of  the  entry,  so 
also,  with  the  terms,  ^od.  acceptance.  The 
terms  of  this  sale  as  indicated  above  mean 
that  the  purchaser  has  agreed  to  accept  your 
draft  at  30  days  for  the  amount  of  the  bill, 
but  the  entry  of  the  sale  will  not  diflfer  in  any 
respect  from  that  of  23  (d),  except  the  line 
stating  the  terms,  which  will  be  as  above. 
Make  your  entry  first  on  scratch  paper  and 
submit  it  to  your  teacher  before  entering  it  in  your  journal.  Deliver  this  bill  by  placing  it  in 
Envelope  No.  5,  Vouchers  for  Others,  and  file  the  order  in  your  voucher  file,  Envelope  No.  2. 

50.  Now  give  careful  attention  to  the  terms  of  payment  expressed  above  as  a  30^/.  acceptance. 
Acceptance  in  this  sense  is  probably  a  new  term  to  you.  The  common  meaning  of  accept  is 
to  receive,  but  it  also  means  to  agree  to,  as,  to  accept  a  statement  to  be  true ;  hence,  in  a  com- 
mercial sense : 

(a)  To  Accept  a  Draft  (which  is  an  order  to  pay  money)  means  to  agree  to  pay  the 
money;  and  the  Acceptance  of  a  Draft  or  Bill  of  Exchange  is  writing  "Accepted,"  the  date,  and 
your  signature,  across  the  face  of  the  draft  or  bill.  This  is,  in  law,  your  promise  to  pay  accord- 
ing to  the  terms  of  the  order. 

(b)  A  Draft  is  an  order  signed  by  one  person  called  the  Drawer,  and  addressed  to  a  second 
person  known  as  the  Drawee,  instructing  him  to  pay  to  a  third  person  or  to  the  drawer  himself 
(in  either  case  known  as  the  Payee)  the  sum  of  money  named  in  the  draft.    It  may  either  order 


CAMPBELL'S    ACTUAL    ACCOUNTING 


39 


payment  to  be  made  immediately,  At  Sight,  or  at  a  certain  number  of  days  after  sight  as  in  the 
form  below.    The  first  is  called  a  Sight  Draft  and  the  latter  a  Time  Draft. 

(c)  A  Bill  of  Exchange  is  a  draft  between  different  countries  usually  in  duplicate  or 
triplicate.  Look  up  the  subject  under  Drafts,  Exchange  or  Bills  in  Spencer's  Commercial  Law,  or 
any  other  good  text-book,  or  in  your  Commercial  Arithmetic,  or  in  some  good  Encyclopedic  Dic- 
tionary; or  question  your  teacher  until  you  thoroughly  understand  this  subject  before  proceeding. 

(d)  The  draft  which  is  sent  by  Mr.  Burke  to  McConnell  &  Co.,  for  their  acceptance  is  made 
out  exactly  as  in  the  form  following,  and  is  sent  out  with  the  invoice.  Study  the  form  carefully 
that  you  may  recognize  it  when  it  is  returned,  which  should  be  in  a  few  days. 


/^^..^^^^^^^^^^^Z.^1^^^^ 


m&/^nm;;(^    '^^^.-r^^^ 


^^^Z^^C^^^^^^^i^'^^^fii^'^-^^^-^^^ 


\LUHBtA   BOUD 


.  \  -t^^^  Dm  Bobhx-HrmM  CoJtNiuiiMptii 


51.     Under  the  date  of  February  i,  McConnell  &  Co.,  return  the  draft  referred  to  in  section 
50,  properly  accepted  as  in  the  following  form. 


Form   18 


^.^^^^^^^^...£^^^Z^£^.^:^^ 


%. 


COLOHBIA    BOHD 


'/J^y/m^ 


V>##  nt  Botts-HrmK  CiiJiKliiiMfiritu 


Detach  the  draft.  Form  18,  from  your  pad  of  Prepared  Blanks,  and  place  it  before  you  while 
you  make  the  entry.  Observe  that  when  sent  out  (see  form  of  draft  in  50)  it  was  an  order 
signed  by  C.  W.  Burke  instructing  McConnell  &  Co.,  to  pay  to  C.  W.  Burke,  the  sum  of  $648.47, 


40  CAMPBELL'S    ACTUAL    ACCOUNXiNG 

and  that  McConnell  &  Co.  have  written  across  the  face  of  this  draft,  Accepted,^ February  i, 
ipi..,  and  that  their  signature  to  this  acceptance  constitutes  a  promise  to  pay  exactly  Hke  the 
promise  made  by  signing  a  note.  As  a  payment  for  the  bill  of  goods  sent  out,  this  acceptance 
then  is  like  the  note  received  from  J.  C.  Dowell  &  Co.,  in  24.  Your  entry  should  debit  Bills 
Receivable  because  the  proprietor  has  received  a  promise  to  pay  him  money,  and  should  credit 
McConnell  &  Co.,  because  they  fufnish  the  value  that  Mr.  Burke  (or  his  Bills  Receivable 
account)  has  just  received.  The  proper  explanation  of  this  entry  will  be,  McConnell  &  Co.  ac- 
cepted our  draft  at  jo  days  in  full  for  Sale  No.  j.  Make  entry  in  your  journal  omitting  two  lines 
on  the  second  of  which  in  the  middle  of  the  page  you  will  write  the  date  February  i.  See  change 
of  dates  in  Model  Journal,  January  7,  10,  and  15.  This  will  be  the  same  except  that  the  name 
of  the  month  is  added,  because  the  month  too  has  changed. 

Observation.  The  use  of  a  draft  in  this  sale  is  somewhat  arbitrary  for  the  purpose  of  in- 
troducing a  time  draft  as  a  Bills  Receivable;  yet  it  is  not  to  be  considered  an  uncommon  com- 
mercial custom  in  receiving  settlement  for  sales.  A  more  frequent  commercial  use  of  the  draft, 
is  illustrated  in  53,  but  a  use  very  much  like  the  one  preceding  may  be  illustrated  by  a 
transaction  that  came  under  the  author's  notice  in  San  Jose,  California.  A  manufacturer  of  fruit 
graders  received  an  order  from  an  unknown  fruit-grower  for  a  large-sized  grader  to  be  shipped 
at  once  with  bill.  The  would-be  buyer  had  no  rating  in  Bradstreet^  and  had  neglected  to  give 
any  business  references.  As  the  seller  had  a  right  to  expect  cash  under  the  terms  of  the  order, 
he  shipped  the  grader  and  drew  at  sight  through  his  bank  in  San  Jose  for  the  amount,  turning 
over  the  bill  of  lading  to  the  bank  as  security.  The  bank  immediately  presented  the  draft  for 
collection  with  the  bill  of  lading  which  was  evidence  that  the  grader  had  been  shipped.  Had 
the  buyer  refused  to  pay,  the  shipper  could  have  notified  the  R.  R.  Co.,  and  stopped  the  delivery 
of  the  grader^. 

52.  Mr.  Burke  informs  you  this  morning  that  hereafter  you  will  be  authorized  to  sign  the 
firm  name  (per  your  own)  in  endorsing  checks  for  deposit  and  in  drawing  checks  in  payment  of 
bills  that  he  has  "O.  K.'d,"  and  he  goes  with  you  to  the  bank  to  authorize  them  to  accept  the 
firm  signature  written  by  you.  The  bank  hands  you  a  signature  card,  Form  19,  which  you  will 
now  detach  from  your  Prepared  Blanks,  and  fill  out  as  in  the  form  following: 

Place   this    card   thus    filled    out    in    Filing 
Envelope  No.  4  which  will  signify  your  having 
-  left  it  at  the  bank,  then  proceed  with  the  day's 

^'"•-"^ '■'"'"" °'^^^y ^^~,        ^  business  as  follows: 

. --1^^    /f  yT(^ .  .SF^;^^-2^^ii-if^fi^*^^f-^^ Estate  Company  for  $150  for  February  rent. 

Carefully  fill  the  stub  first,*  then  make  out  this 

'~7^^=>?-y;^^^^.>L^  ^1^^^^^   '^t^r/^  check  exactly  like  the  one  drawn  by  Mr.  Burke 

,^'"            </          .—         / ,  ^    -   .  .^  payment  of  January  rent  (see  section  13), 

7^^^^  ^  introdpudb)^  ~Z  except  that  it  will  be  No.  6,  and  that  after  you 

^-^^  have  written  C.  W.  Burke's  signature,  you  will 

""  '"  "'  write  beneath   it   the  word.  Fer  followed   by 

your  own  name.     Consult  your  teacher  to  see  if  you  have  drawn  this  first  check  in  correct  form. 

Enter  and  explain  as  in  former  rent  payment  in  section  13;  then  place  the  check  in  Filing  En- 

1.  Black  ink  is  now  much  used  in  accepting  drafts,  or  a  rubber  stamp  is  used  for  all  except  the  signature; 
but  it  is  a  very  old  commercial  custom  to  use  red  ink  for  the  words  written  across  the  face  on  Form  18. 

2.  The  principal  commercial  agency  for  the  Pacific  Coast  and  one  of  the  two  leading  agencies  in  the  United 
States.     See  also  Foot  Note  2  under  60  (b). 

3.  In  a  case  like  the  above,  it  will  be  found  best  to  make  shipment  to  the  shipper's  own  order  and  then 
endorse  the  bill  of  lading  in  favor  of  the  buyer.  This  avoids  any  legal  quibble  over  the  right  of  Stoppage  in 
Transitu.     (See  this  topic  in  Commercial  Law.     Spencer's  Modern  Business  Law,  pp.  157,  158.) 

4.  Failing  to  fill  the  check  stub  first  often  results  in  failing  to  fill  it  at  all  and  leaves  no  record  of  the 
nayment. 


Form  19 


%ss^mm.  ®%Samfe 


u      //rv.tt^. 


CAMPBELL'S    ACTUAL    ACCOUNTING 


41 


velope  No.  5,  Vouchers  for  Others,  and  detach  from  Prepared  Blanks  the  receipt  for  rent,  Form 
20,  which  you  will  place  in  your  voucher  file,  Envelope  No.  2. 

(b)  Mr.  Burke  instructs  you  to  draw  a  check  in  favor  of  Cash^  for  $100  as  in  the  form 
below  and  sends  you  to  the  bank  to  draw  that  amount  in  currency  for  the  payment  of  sundry 
bills. 


CoLi^EOE  City.  y.  S., 


NO. 


^ 


Pay  to  the 

ORDER  OF 


/OLi^^.^ — :g;^I^^<a;^^y-^<gz^^^^WJ:  ^.^^.^^t^^^-7^.<^^^^/y^  a 


.^Z^2ai 


ea_ 


DOULARJS 


Before  writing  out  the  check  you  will  first  subtract  the  amount  of  check  No.  6  from  the 
former  balance  and  carry  the  new  balance  forward  to  the  top  of  the  page  from  which  this 
check  No.  7  is  to  be  taken ;  next  fill  the  stub^,  and  then  write  out  the  check  very  carefully,  and 
detach  it  along  the  dotted  lines.  Place  the  check  in  the  Garden  City  Bank,  Envelope  No.  4,  and 
detach  from  your  page  of  Prepared  Blanks  the  imitation  currency  which  represents  in  different 
denominations  the  total  sum  of  $100.  Count  the  money  and  place  it  in  the  cash  drawer,  Filing 
Envelope  No.  i.  Observe  that  there  will  be  no  entry  for  this  drawing  of  cash  as  the  contents  of 
both  cash  drawer  and  bank  are  included  in  one  account  (see  45  a)  and  there  is  no  transfer  of 
value  from  one  account  to  another. 

(c)  Mr.  Burke  instructs  you  to  take  $50  out  of  the  cash  drawer  for  your  salary  and  charge 
it  to  a  Salaries  account^.    Make  the  entry, — 


Sfi 


Sa 


The  money  for  this  payment  of  salary  might  properly  go  into  your  own  pocket,  but  as  you  are  in 
this  case  one  of  the  outside  parties  with  whom  the  firm  has  dealings,  it  will  be  as  well  (better 
for  checking  purposes)    to  put  it  into   Envelope  No.  5,  Vouchers  for  Others. 

(d)  Detach  from  your  pad  of  Prepared  Blanks,  Form  21,  the  bill  of  College  Transfer  Com- 
pany which  is  shown  following  and  observe  that  it  is  for  freight  advanced  and  for  hauling  goods 
from  the  depot  to  your  store. 


1.  A  convenient  form  of  check  when  you  wish  to  draw  cash.     Other  forms  will  be  given  later. 

2.  Always  fill  out  your  check,  stub  carefully  before  writing  the  check.  Make  this  an  inflexible  rule.  Such 
a  habit  will  save  you  a  great  deal  of  trouble. 

3.  Since  you  are  the  Only  employee  being  considered  in  this  study,  we  might  with  propriety  charge  this 
item  to  Expense,  but  it  will  serve  better  for  the  illustration  of  future  work  to  open  an  account  with  Salaries 
at  this  time. 


42 


CAMPBELL'S    ACTUAL    ACCOUNTING 


Form   21 


.  ^.  -n^-^^^..^^^^ 


RECEIVED 19 

ENTERED.  ./ 

NO    AND  FILE  LETTER 


©RANCH  0FF!<5|i^|^^ 

»®near  s.p  DERirr.^ 

TELEPHONE    N"  784 


BAGGAGE  McFREIGI 
\to-'FROm  railroad  depots' 
1  moving  pianos^'furniture^ 
-'«^ta  specialty  t^~  ' 
,  baggage.  checked  at 

HOTELSANDRESIDEh 
I  ALL  POINTS,' 


CnUEDETRAUHFERCO. 


Date 

.- 

Pkgs 

Kind 

Frorr. 

To 

Weight 

Amount 

J^ 

J2. 

^<^^^*^>-^ 

/  / 

2. 

— 

/^J. 

— 

Many  authors,  in  the  elementary  part  of  their  text-books,  charge  such  bills  to  Expense,  but  we 
see  no  reason  for  not  teaching  a  proper  classification  of  the  different  items  from  the  beginning, 
and  the  items  of  Freight  and  Cartage  on  goods  received  have  so  direct  a  bearing  on  the  cost  and 
selling  prices  of  goods,  that  we  believe  the  student  should  be  trained  to  consider  them  separate 
from  the  unclassified  items  of  general  expense.  There  might  be  good  reason  for  having  separate 
accounts,  one  for  Freight  and  one  for  Cartage^  but  we  believe  that  this  first  step  will  suggest  the 
second  to  the  student  when  his  business  requires  it.  Observe  that  the  bill  as  presented  above  is 
receipted,  showing  that  it  has  been  paid.  In  making  the  entry,  omit  two  lines  as  before  and  debit 
Freight  account  because  you  have  put  value  into  it,  crediting  Cash  because  that  account  fur- 
nished the  value.  Explain,  Paid  Expense  Bill  No.  i.  You  will  observe  that  although  we  do  not 
charge  this  item  to  the  general  Expense  account,  it  nevertheless  belongs  to  that  class  of  accounts, 
and  the  invoice,  termed  an  Expense  Bill  instead  of  a  Mdse.  Invoice,  is  not  filed  with  the  invoices 
that  come  in  for  merchandise,  but  is  placed  in  a  separate  file.  File  this  bill  so  that  the  figures 
appear  on  the  outside  with  the  red  ink  stamp  facing  you  and  place  it  in  your  voucher  file.  Envelope 
No.  2. 

(e)  Next  detach  from  your  Prepared  Blanks,  Form  22,  the  bill  of  the  Citizens'  Water  Com- 
pany, a  copy  of  which  appears  following,  and  observe  that  it  is  another  expense  bill  and  one  that 
goes  to  the  general  Expense  account.  Make  your  entry  as  in  the  item  of  rent  in  13,  but  explain. 
Paid  Expense  Bill  No.  2 — Water,  January.  Observe  that  the  bill  is  receipted.  Enter  the  filing 
memoranda  in  the  red  stamped  form  and  file  in  Envelope  No.  2. 


1.  Observe  that  Cartage  on  merchandise  received  may  be  very  properly  included  in  the  Freight  account, 
as  the  distinction  is  only  one  of  the  kind  of  carrier  or  of  distance,  which  does  not  concern  the  accountant;  but 
that  if  customers  be  charged  cartage  for  the  transfer  of  goods  sold  from  your  store  to  the  depot  or  express 
offlce,  that  would  be  an  item  of  accounting  that  would  have  no  place  in  the  Freight  account  above,  and  miglit  be 
very  properly  kept  in  an  account  termed  Cartage. 


CAMPBELL'S    ACTUAL    ACCOUNTING 


43 


Form  22 


a.   5 


E  X 


c-43 

lie 


^=      =^fi 


*5     «« 

<  e 


■O  4)  O 

lip 

■u  "  s  <-i.  B 


♦^  Q.! 
OS  c-^ 


No.  676. 


College  City^^^^^^l9- 


OFFICE    OF 


RECEIVED       19. 

ENTERED 

NO    AND  FILE  LETTER  . 


Cttt^ens  Wnttx  Company 


To  W 
To  A 


Mp.         ~t^-  .^::^/^   Xr^y^^y?^^.^^ 

'  /^  Your  name  here 

'ater  for  month  of     L/^^-^7'<'^'f^A^^ 

rreara,<2;es  from — ^2_ — 


Dr. 


$2.00 


Total 
Received  Payment, 


*2  00 


Collector 


53.  February  10. — Turn  back  to  Section  23  and  observe  that  on  January  11  you  sold  a  bill 
of  merchandise  to  the  Park  Grocery  Company,  Beaconsfield,  for  $150.00,  on  30  days,  subject  to 
draft.  Turn  to  the  account  with  the  Park  Grocery  Company  in  your  ledger  and  observe  the 
record  as  it  stands  there,  showing  a  debit  of  $150.00  in  the  account.  Since  no  remittance  has  been 
received  from  the  grocery  company,  we  are  authorized  by  the  terms  of  the  sale  to  draw  on  them 
for  the.  amount  of  the  bill.  Detach  from  Mr.  Burke's  Prepared  Book  of  Drafts,  the  draft  that 
he  has  drawn  on  the  Park  Grocery  Company  in  favor  of  the  Garden  City  Bank,  and  make  an 
entry  in  your  journal  debiting  Cash  and  crediting  the  Park  Grocery  Company^,  explaining,  Dreix) 
at  sight  in  favor  of  Bank.  Do  not  neglect  to  omit  the  usual  two  lines  between  entries  and  to 
write  the  new  date,  February  10.     A  copy  of  the  draft  is  shown  below. 


Place  this  draft  in  your  cash  drawer,  Filing   Envelope  No.  i,  until  you  are  instructed  lo  ue- 


1.  A  sight  draft  on  account  is  handled  as  above,  usually  in  case  the  drawer  is  certain  that  it  will  be 
honored,  and  often  when  the  drawer  is  uncertain  on  that  point,  but  needs  the  temporary  credit  at  the  bank 
which  the  deposit  of  the  draft  will  give  him.  In  case  the  draft  should  not  be  honored  after  making  an  entry 
like  the  above,  it  will  be  necessary,  when  the  draft  is  returned,  first,  to  charge  again  to  the  customer  and  credit 
Cash,  and  second,  to  make  a  deduction  of  the  amount  from  the  balance  in  your  check  book.  It  is  a  better  plan, 
ordinarily,  and  one  that  is  very  widely  followed,  to  place  drafts  as  above  in  the  bank  "for  collection,"  as  you  did 
the  note  of  J.  C.  Dowell  &  Co.  in  46  (a)  3,  and  to  make  no  journal  entry  until  you  receive  notice  as  in  54  that 
it  has  been  collected  and  placed  to  your  credit. 


44 


CAMPBELL'S    ACTUAL    ACCOUNTING 


posit  it  in  the  bank.     When  it  is  deposited,  the  bank  will  credit  you  as  for  a  check  and  will  send 

the  draft  to  the  bank  at  Beaconsfield  to  be  collected. 

54.     February  11.— Detach  Form  23  from  your  Prepared  Blanks,  observing  that  it  is  a  notice 

from   the   Garden   City  Bank  informing   you  that  the  note  of  J.  C.  Dowell  &  Co.,  which  you 

placed  in  the  bank  for  collection  at  the  time 
of  your'  last  deposit  (See  45^  b),  has  been 
collected.  A  copy_  of  this  notice  is  given 
here  that  you  may  have  it  for  future 
reference.  The  form  of  journal  entry  is 
given  next  following  the  copy  of  the 
notice.  Observe  that  your  bank  has  not 
charged  you  any  fee  for  collecting  the  note, 
placing  the  entire  amount  of  principal  and 
interest  to  your  credit.  Banks  usually  make 
a  regular  charge  for  collecting,  but  sometimes, 
when  a  customer  uniformly  maintains  a  large 
balance  to  his  credit,  the  bank  considers  the 
size  of  the  account  (if  they  are  not  paying  him 
interest  on  daily  balances)  a  sufficient  re- 
muneration for  their  collection  services.  Ob- 
serve that  in  this  entry  Cash  receives  (and  is 
debited  for)  $1,299.53.  That  $1,293.08  of  this 
came  out  of  Bills  Receivable,  and  the  balance 

from  a  new  source  with  which  we  will  open  an  account  called  Interest  and  Discount} 


Form  23. 

Garden  €ity  Bank 

College  Citv,  Y.  S.,Feb.  11, 191--. 

Mr.    C.    W.      Burke, 

College  City,  Y.  S. 

The  no \,e  against   J.     C.    Dowell   & 

Co.,    left   bg  gou  at  this  bank    has  been 

collected  as  follows: 
Face  of  note- -$1Z9Z  .08 

Interest $         6  .  45  Total  $1399.53 

Collection  charges $  „____ 


We  credit vour  account $1399  .  53 


5^ 


/>2-^f 


s^ 


ar 


/^:r 


If  your  bank  had  charged  you  a  collection  fee  of  twenty-five  cents  the  entry  would  be  as  in 
Foot  Note  2  below. 

Now  prepare  a  deposit  ticket  for  the  sight  draft  drawn  on  the  Park  Grocery  Company  in  53 
and  take  it  with  the  draft,  the  notice  of  collection  just  received  and  your  pass-book,  to  your  teacher, 
asking  him  to  make  the  proper  entry  for  the  banker  and  to  show  you  how  to  enter  this  draft  and 
the  note  collected  on  the  stub  of  your  check  book,  provided  you  cannot  make  the  check  book 
entry  yourself  after  consulting  the  illustration  of  your  check  stubs  presented  in  66  (b). 


1.  When  a  business  man  is  both  receiving  interest  on  notes  in  his  favor,  and  paying  interest  on  notes  that 
he  owes,  it  is  sometimes  considered  best  to  fceep  two  interest  accounts,  one  called  Interest  Receivable,  for  inter- 
est in  his  favor,  and  one  called  Interest  Payable,  for  interest  that  he  pays.  Both  classes  of  interest  may,  how- 
ever, be  carried  in  the  same  account,  the  right  side  showing  the  interest  receivable  and  the  left  the  interest 
payable.     When  the  account  is  so  kept,  it  is  usually  termed  Interest  and  Discount  as  above. 

2.  Had  a  charge  been  made  for  the  collection  of  the  note  in  54  the  entry  would  have  been  journalized 
thus : 


Cash 

Collection  and  Exchange 

Bills  Receivable 

Interest  and  Discount 

Note  of  J.  a  D.  &Co. 
Collected  through  bank.     Charges  25c. 


1  299 


25 


08 
45 


CAMPBELL'S    ACTUAL    ACCOUNTING  45 

55.  Detach  Form  24  from  your  Prepared  Blanks,  observing  that  it  is  an  order  received  by 
mail;  that  it  is  not  on  one  of  your  regular  blanks  as  other  orders  have  been,  and  that  the  prices 
are  not  extended  as  in  the  case  of  orders  sent  in  by  traveling  men.  The  catalog  prices  referred 
to  are  as  follows : 

Y.   H.   Tea 371^/   less  20%i 

South  Carolina  Rice 8c    less    i2i/^% 

Pillsbury's   Best   Flour $6.60   less    121/2% 

Fill  in  the  prices  and  make  the  extensions  in  the  detached  form  as  they  are  made  in  pencil 
(indicated  by  pen  work)  in  the  copy  of  the  form  below.    Make  also  the  additional  notation  as  to 
terms, 
(a) 

Form  24 

anderson  &  anderson 
Grogeiues, 

ALBIA,  V.  S. 


February  10,  191_. 


C.  W.  Burke, 

College  City.  Y.   S. 

Dear  Sir: 


Please  send  by  Burlington  Freight  the  goods  listed  below 
at  the  prices  quoted  in  your  catalogue  less  your  regular  dis- 
count to  the  trade,  billing  at  50  days^J^^ c^j^/A^ 9p^  3^^->  4-^>- 

2  hlf.  chests  ¥•  H»  Tea-V^''^^-?^/-^^^ -^^  ;^     "^^X.^-^ 
4  sks.  S.  C.  Rice       e-^^r^i^^^  «pX  ^-  /^T^"^^      ,       ^'ZT 
50  brls.Pillsbury'  s  Flour  fy  /^.  ^^^-  Q  ^  -  -^^/^  ^  r^ffi^ 


Your  prompt  attention  will  greatly  oblige, 

yy^   Ande^sop  &^toderson» 

Observe  that  in  the  order,  Anderson  &  Anderson  ask  for  30  days  with  discounts  and  that 
in  the  copy  of  the  bill  you  quote  S^'^-i  ^^ ^^  cash,  i^  10  note  sod.  6%.  In  the  quotation  of  terms  the 
apparent  fractions  2^10  cash  and  I'^io  note,  etc.,  are  expressions  used  commercially  to  signify  2% 
ofi  for  cash  within  10  days  and  1%  off  for  note,  etc.,  within  10  days.  Enter  sale  and  file  order. 
See  49.  Record  sales  number  and  terms  and  itemize  sale  carefully.  Deliver  invoice  by  placing 
in  envelope  No.  5. 

1.  Trade  Discount.  Jobbers  in  some  lines  of  business  publish  catalogue  price  lists  in  which  the  current 
retail  price  is  quoted  and  from  which  they  regularly  malte  a  discount  to  the  trade.  This  discount  is  seldom  the 
same  for  all  the  items  of  an  invoice  and  if  not,  must  be  deducted  from  each  separately,  as  in  the  order  above, 
when  making  the  extensions,  although  if  considered  more  convenient  two  or  more  items  that  are  quoted  at  the 
same  discount  may  be  discounted  in  one  sum,  as  in  the  invoice,  55  (b).  A  good  form  for  the  invoice  when  all 
items  have  the  same  discount  is  shown  in  60   (c). 


46 


CAMPBELL'S    ACTUAL    ACCOUNTING 


(b)     Make  out  the  invoice  as  in  the  form  below. 


ALL  CLAIMS  FOR  SHORTAGE  OR  DAMAGE  MUST  8E  MADE  WITHIN  TWO  OATS  FROM  RECEIPT  OF  SHIPMENT.       REFER  TO  ORDER  NUMSEtt 


Cbester  W.  iSurk 

JOBBER  IN  GROCERIES  AND  GROCERS' SUNDRIES 
COLLEGE  CITY,  Y.  S. 


Order  No    ■^^ 
Salesman  


^^^;^^^-.ii,^-«ig^-,^  x/ 


J9I  — 


SOLD  TO     /^^^^^W,'a'^g<2<^;rg>:?:g^  y^/^^^^W^gz:^,,,^^^^-^^ 


^ 


.^^^.^a^r^ 


g^^^^g^  y^^ 


^^<X^.  9pr//^^^^l^ 


.  ?pr//^  ^^^.^£^  J2^^^ 


^J2. 


.4^  ..^^^  j^^f^^::?'^^-^^  ^^^ S^ 


7^ 


^^  ^^^^  :2^^^^.^^^^j^g^^2^^^^4/^^y^y^^    S3af^ 


.^^ 


^^^yjZ''/:^    ^ 


:^^^5^-^ 


^•<^-^ 


^^ 


^.rr 


2=^ 


(c)  Mr.  Burke  desires  the  note  in  this  case  to  be  in  a  particular  form,  known  as  a  joint  and 
several  note  payable  at  his  own  bank  and  he  sends  out  with  the  bill  a  note  drawn  in  that  form, 
less  the  i%  discount  quoted  in  the  terms  of  the  invoice,  ready  for  the  signature  of  Anderson  & 
Anderson  and  the  person  who  will  sign  with  them  as  security.  The  form  of  note  sent  out  is 
as  follows : 


%.9rp^^ 


J^o.±=f- 


Due 


j^^t^^-^tl^i^^y  doMS  after  d.ntp  .^s^^^^^^^^^^^^j^yy^ p 


to  pay  to  the  order  of 


of ^^~^:^':^^^^^j'y 


romise 
at 


W^t  0arb|n  Citp  Mvk 


i^lJ)oDars, 

100 


100 

with  five  per  cent  Attorneys  fees,  upon  tbe  principal  or  ibis  Dot«  Value  received,  wiihoui  any  relief  whatever  from  Valuation  or  Appraisement  laws  of  tbe 
State.of  Indiana.  Wlib  Interest  at  tbe  rate  of  eisht  per  cant,  per  anaum  after  maturitr  ontil  paid.  Tbe  drawers  and  endorsers  severally  waive  presentment 
for  payment,  protest,  notice  of  protest,  and  notice  of  nonpayment  of  this  note. 


56.  Detach  from  your  Prepared  Blanks  Form  No.  25  (a),  and  observe  that  it  is  a  notice 
from  your  bank  advising  you  that  the  bank  holds  against  you  a  sight  draft  drawn  by  the  Pills- 
bury  Flour  Mills  Co.,  of  Minneapolis,  for  the  sum  of  $2,875.00. 

(a)  Mr.  Burke  instructs  you  to  draw  his  check  in  favor  of  the  Garden  City  Bank  for  this 
amount.     First,  fill  out  the  stub,  then  write  out  the  check  very  carefully,  following  the  form  below. 


CAMPBELL'S    ACTUAL    ACCOUNTING  47 


COLLEGE  City, 


,  Y.  s.,     ^^^-^ Z/;^ 19^1 No.-z£l ^ 


Pav  to  the 

ORDER  OE 


Present  this  check  with  the  detached  notice  (taking  with  you  your  pad  of  Prepared  Blanks) 
to  your  teacher,  who  will  accept  your  check  and  hand  you,  receipted,  the  draft^  which  you  have 
been  sent  to  pay.  Before  turning  over  the  check  to  the  teacher,  or  banker,  it  is  your  privi- 
lege to  see  the  draft,  to  observe  that  it  is  signed  in  the  lower  right  hand  corner  by  the  Pills- 
bury  Flour  Mills  Co.  and  addressed  in  the  lower  left  hand  corner  to  C.  W.  Burke.  You  should 
also  observe  that  it  is  correct  in  amount  and  that  the  bank  in  whose  favor  it  is  drawn  on  the 
face  of  the  draft  has  endorsed  on  the  back,  making  it  payable  to  Garden  City  Bank,  in  whose 
favor  you  have  drawn  your  check.  File  the  receipted  draft  in  Envelope  No.  2.  Observe  in 
making  your  entry  that  this  draft  is  not  a  promise  to  pay  on  your  part,  and  hence  is  not  a  Bills 
Payable.  It  is  simply  an  order  to  pay,  amounting  to  no  more  to  the  bookkeeper  than  a  request 
to  pay,  and  the  entry  will  be  the  same  as  if  you  remitted  without  waiting  for  the  draft,  or  ex- 
actly like  the  entry  in  19,  except  that  the  explanation  should  read.  Paid  draft  in  full  of  account, 
Ck.  5. 

57.  Detach  from  your  Prepared  Blanks  Forms  26  and  27,  these  being  an  invoice  of  merchan- 
dise just  received,  accompanied  by  a  draft  at  30  days  for  the  amount.  Make  entry  for  the  in- 
voice as  in  Section  15,  writing,  for  your  explanation,  Inv.  3-G;  Terms:  Acceptance  ^od.  Observe 
the  check  marks  on  this  invoice.  Your  attention  has  not  been  called  to  this  before,  but  every 
invoice  when  it  is  received  is  gone  over,  first,  to  see  if  the  prices  are  right.  This  has  been  done 
by  Mr.  Burke,  as  indicated  by  the  check  marks  opposite  the  items  in  the  price  column  and  his 
initials  beneath.  Next,  the  receiving  clerk  has  checked  the  bill  with  the  goods  when  they 
came  in,  to  see  that  all  goods  were  received  as  billed.  Observe  his  check  marks  in  the  margin 
to  the  left  and  his  initials,  D.  A.  C,  at  the  foot  of  that  column.  You  will  now  take  this  bill 
and  will  carefully  compute  the  extensions,  then  the  discount,  and  the  subtraction  of  the  discount, 
to  see  that  all  the  computations  of  the  bill  are  correct^  and  will  place  your  check  mark  opposite 


1.  Teacher  will  detach  this  draft,  Form  25  (b),  from  your  pad  of  Prepared  Blanks,  and  place  your 
check  in  the  Bank  Envelope  No.  4.  » 

2.  Observe  that  having  taken  away  1/10,  the  $195  represents  9/10  and  that  you  can  prove  both  your 
computation  and  subtraction  of  the  discount  by  multiplying  the  exact  discount,  $21.66  2/3,  by  9  to  give  $195. 
Learn  to  "Prove  all  things."  You  will  have  no  "book  of  answers"  nor  any  "key"  to  your  results  when  you  go 
out  into  business,  and  if  you  are  to  be  worth  anything  as  an  accountant,  your  computations  must  be  absolutely 
correct.  To  prove  the  extensions  and  additions  of  this  invoice,  a  convenient  method  is  that  known  as  casting 
out  the  9's  or  ll's.  (See  Fritch's  Quick  Figuring,  pp.  48-50.)  Another  plan  is  to  make  every  computation 
a  second  time  in  some  other  way.  For  example,  2  gross  tumblers@$9.50,  $19. — .  The  original  computation 
was  probably  made  by  multiplying  $9.50  by  2.  Prove  it  by  observing  that  $9.50  is  $10  less  one  twentieth  or  19/20 
and  from  10  times  2,  or  20,  subtract  one-twentieth  (1/20)  of  itself,  leaving  $19.  This,  of  course,  seems  too  easy 
to  need  proof,  but  experience  will  teach  the  student  that  mistakes  occur  as  frequently,  if  not  more  frequently, 
in  easy  computations  as  in  difficult  ones,  and  that  to  be  absolutely  accurate  it  is  necessary  to  "Prove  all  things." 


48 


CAMPBELL'S    ACTUAL    ACCOUNTING 


each  item  and  your  initials  in  the  total  column  where  the  initials,  "T.  E.  C,"  appear  in  the  copy  of 
the  invoice  following.  When  this  is  done  place  the  proper  memoranda  in  the  red  ink  form  on 
the  face  of  the  invoice  and  file  as  before  in  your  invoice  file. 

Form  26  ^_^^ 


T>cnry  jM.  6obk 


MANUFACTURER  OF 


RECEIVED  lO- 

ENTERED..  

NO    AND  FR-E  LETTER 


MASON'S  AND  LIGHTNING  FRUIT  JARS 


AND    DEALER    IN 


GOBLETS,  TUMBLERS,  LAMP  CHIMNEYS 
AND  GLASSWARE 


Order  No  -^^t^I— 


COLLEGE  CENTER 


■      ^^^ 


_   _„ soun  TO    ^-^^y^^^^Jf^^ 


.^J2. 


^..^i^^:>^<£</  J^^i^^^^Z<,-i>,^^^-±^ 


-^ 


■£a^  -^ 


■^ 


% 


.1^ 


^^.^y.  ^^^^^^^^.^ 


.z^ 


-2^ 


^ 


^ 


.^^J-.P^_>g^ 


/^  —    >  n 


^ 


^ 


•^ ,i<^i^:Z'<^^.^^^  "^^^ 


^ 


..    ^%c^^  ^ 


22--^, 


-^ 


S^ 


*t 


LZ^^ 


^ 


^^^£^d^  /^^ 


4^ 


^ 


^^- 


(a)  Mr,  Burke  instructs  you  to  accept  the  draft  that  accompanies  this  invoice,  and  that 
your  action  may  certainly  bind  him  and  be  accepted  as  authoritative  by  the  drawer,  he  hands 
you  a  fully  executed  power  of  attorney.  Form  28,  in  your  Prepared  Blanks,  which  you  will  now 
detach  and  place  in  your  Voucher  File  for  safe  keeping.  Write  the  acceptance  across  the  face 
of  the  draft  in  red  ink  exactly  as  it  appears  in  the  copy  of  the  draft  shown  below^,  but  with  your 


Form  27 


rsm^ 


^%? 


id 


4 


r^-Z2_ 


/i^m^^^m:mw^ 


^""^ ,        ^^^^^^^^ 


--t^l„^f^^-^ J^y "Z:^^^^>; ;^  ^\' 


1^      COLUHPIA    BONll 


.,<;y*  7*  Uiihbsflrnill  t'^■Jlllfmlla|)l^l 


'mJSS33S^SSS!^3^^S^SS53^^S^03S5^ 


1.  The  words,  attorney  in  fact,  beneath  your  signature,  constitute  an  announcement  that  you  hold  Mr. 
Burke's  Power  of  Attorney  and  are  expressly  authorized  to  sign  his  name  on  this  paper.  Any  who  question  your 
authority  further  can  ask  to  see  the  power  or  for  a  certified  copy  of  it.  For  a  further  study  of  the  powers  con- 
ferred by  this  document,  see  Spencer's  Modern  Business  Law,  pp.  100  and  101.     (See  Foot  note  1  under  51.) 


CAMPBELL'S    ACTUAL    ACCOUNTING 


49 


name  instead  of  T.  H.  E.  Student  in  the  blank  following-  the  word  per.  Study  49  and  50  be- 
fore making  entry,  but  remember  that  you  are  promising  to  pay  this  draft  instead  of  expect- 
ing to  receive  payment;  hence,  it  is  a  Bills  Payable,  instead  of  a  Bills  Receivable,  and  is  simi- 
lar to  the  note  given  and  discussed  in  20.  For  your  entry,  debit  H.  M.  Goble,  because  he  receives 
the  value  represented  by  the  draft,  and  credit  BillsPayable  because  you  are  giving  the  firm's  promise 
to  pay.  Explain,  Accepted  H.  M.  G.  dft.  jo  d.  Inv.  5.  Observe  that  this  No.  5  is  not  the  number 
at  the  head  of  the  invoice ;  that  is  H.  M.  Coble's  sales  number.  Your  number  you  are  to  put  on 
the  bill  in  the  red  ink  form  as  before. 

(b)  Observe  that  as  you  credit  Bills  Payable  when  you  accept  this  draft,  you  will  debit  Bills 
Payable  when  you  pay  it.  Do  not  forget  this  when  the  draft  matures.  It  will  not  be  like  the 
entry  for  payment  of  the  draft  in  56;  the  acceptance  makes  the  difference.     Why? 

58.  February  15.  Detach  from  your  pad  of  Prepared  Blanks,  Form  No.  29,  the  note  of 
Anderson  &  Anderson  duly  signed  and  returned  in  payment  of  the  invoice  sold  them  on  February 
II,  less  one  per  cent.,  as  per  the  terms  of  the  bill.  The  entry  for  this  payment  involves  a  prin- 
ciple similar  to  that  governing  the  entry  in  Section  21.  Observe,  however,  that  in  the  transaction 
discussed  in  21,  Mr.  Burke  made  payment  in  cash  less  the  discount,  and  the  Pillsbury  Flour 
Mills  Company  was  debited  for  the  amount  of  both  cash  and  discount.  This  time  Mr.  Burke 
receives  the  payment  in  the  form  of  a  note  less  the  discount  and  Anderson  &  Anderson  will 
be  credited  for  the  amount  of  both  note  and  discount.  Make  your  entry,  as  below,  debiting  Bills 
Receivable  for  $382.88  the  face  of  the  note  just  received  and  Merchandise  Discount  for  $3.87  the 
amount  of  the  discount  (a  loss  received),  and  crediting  Anderson  &  Anderson  for  the  full  amount 
of  the  bill.  Explain,  Rec'd  of  A.  &  A.  their  note  at  jod.  for  Sales  No.  4,  less  1%.  Place  this  note 
in  your  cash  drawer  for  safe  keeping. 


<7 


u?^ 


7^ 


59.  Detach  Form  30  from  your  pad  of  Prepared  Blanks.  Observe  that  it  is  another  invoice 
from  the  Keystone  Company.  Fill  in  the  proper  memoranda  in  the  red  ink  form.  Make  entry  as 
in  22  and  file  the  invoice  in  Envelope  No.  3. 

60.  February  20.  (a)  Detach  from  Prepared  Blanks,  Form  31,  observing  that  it  is  a  letter 
from  McConnell  &  Co.,  ordering  merchandise.  Turn  to  their  former  order  in  49  and  note  that 
the  flour  of  their  former  order  was  put  up  in  1/4  brl.  sks.  and  quoted  to  them  at  $5.77>^.  As  they 
do  not  specify  anything  else  in  this  order  it  is  safe  to  suppose  that  they  would  have  it  filled  in 
the  same  manner.  Our  Roman  Beauty  apples  at  $2.80  will  fill  the  order  in  that  respect.  Fill  in 
the  necessary  memoranda  as  to  the  kind  of  apples,  and  the  size  of  the  flour  sacks,  enter  the  prices, 
make  the  extensions,  total  the  order,  and  note  the  freight  route  for  shipping,  and  the  terms  for 
billing,  all  in  pencil,  on  the  detached  order.  Form  31,  exactly  as  indicated  by  the  writing  in  the 
copy  of  Form  31,  presented  in  the  text.  When  the  order  is  filled  out  as  instructed,  submit  it  to 
your  teacher  for  his  stamp  of  approval  and  proceed  to  make  out  the  invoice.  A  correct  form  of 
invoice  will  be  found  in  23  (f).  Enter  shipping  instruction  on  invoice  as  in  16.  File  order  in 
Envelope  No.  2  and  deliver  invoice  by  placing  it  in  Envelope  No.  5  together  with  a  copy  of  C. 
W.  Burke's  reply  to  the  letter  of  McConnell  &  Company,  shown  on  Page  yy.  This  letter  is  pre- 
sented as  a  specimen  of  a  form  letter  prepared  to  accompany  outgoing  invoices.  With  the  ex- 
ception of  one  paragraph  which  is  dictated,  it  is  written  by  the  stenographer  "from  the  form" 
without  any  instructions  from  the  proprietor. 


50 


CAMPBELL'S    ACTUAL    ACCOUNTING 


Form  31 

(a) 


I^Mli!^iI^Ji5llmltl^^^^ll1^llll^^^l^vnl^^l.;n^■^^!ll1lHN'i^l»M»lllllll^lllll^l!ll^lltIlll: 

McCONNELL  &  COMPANY 


— — iM>miiim.ii|ii,r;iimBniiffiirMtmwni 

(s)    (grocerleiBr,  »oot|f,  Stf^oegl,  ^ 


' — m^ 


enmjmuUajiLm:LlmmmmuimitjJtumiiiuiujiiiiiiiiiiniJiiiiiii«iiiiimiiuimLi]iiiiiiiiliiiii^ 
-  -•—-■•  TBPWII|iMgiUl|i|  Mill  IWilUMUiWWWIIIIII 


FAIRFAX.  Y.  S., 


Mr.    C.    W.    Burke, 

College  City,  Y.  S. 

Dear  Sirl- 

Please  send  me  by  first  freight,  and  bill  at  30  daysl- 

100  brls.  "Pillsbury's  Best"  Flour  ^ i^r«*.^  <«  ^-7/^    *r//.  So 
60   "    good  Apples,  "7/^7^*^*<^'^t.<tt*^(?  ^.<r<?    J^o.  oo 

provided  you  can  supply  good  saleable  apples  so  that  I  can 
retail  them  here  at  from  $3.75  to  $3  60  per  brl. 


/  y.A'o 


That  Pillsbury •  s  Flour  is  a  seller.  Your  representative  said 
there  was  but  one  "Best"  and  insisted  that  I  should  order  more  when 
he  was  here,  but  t  had  no  idea  that  I  would  need  to  re-order  so  soon, 

Thanking  you  in  advance  for  a  prompt  shipment,  we  remain. 


t/o 


^o 


r-^-^L^A 


McConnell 


Form  32 


(b) 


F.  H.VB 


30  5  ScuJtlHiSumWttAv^ 


OIRARD,  V.  8. 


February  14,  19 

Mr.  C.  W.  Burke,  

College  City,  Y.  S. 

Dear  Sir: -Please  ship  me  by  Frisco  freight, 

4  brls.  Gran.  Sugar"  S^i*',  six*,  SJJ^.B iZ"^- /y^o^ <S  ^i-r^ 
10   '  *    Roman  Beauty  Apples  <g  3Xo 

20   "    "Pillsbury's  Best"  Flour  '/u^^^^,^,^^     e^^* 

I  realize  that  I  am  a  stranger*  to  you  as  I  have  but  recently  erv^ 
gaged  in  business  for  myself  in  this  city,  but  I  have  had  some  ten 
years'  experience,  and  have  made  a  wide  circle  of  acquaintances,  as'an 
employee  of  Mr.  L.  F.  Price,  one  of  your  customers,  to  whom  I  am  privi-, 
leged  to  refer  you  for  any  information  you  may  desire  in  regard  to  my 
business  ability  and  integrity.   I  may  also  refer  you  to  the  State 
Bank  of  Girard. 

Please  bill  the  goods  on  60  days  as  per  your  catalog  and  price  list, 
and  quote  discount  for  cash.  Thanking  you  in  advance,  I  am. 


.Yours  truly. 


5^  j^^^VT  C^2-<.-t-^t->-»'a— . 


CAMPBELL'S    ACTUAL    ACCOUNTING  51 

(b)  Next  detach  Form  32  from  Prepared  Blanks,  observing  that  it,  too,  is  a  letter  ordering 
merchandise.  Evidently  this  order  is  based  on  our  catalogue  quotations  and  we  will  bill  accord- 
ingly, as  appears  in  the  copy  of  this  order,  shown  on  opposite  page.  For  billing  and  entering, 
follow  instructions  in  55,  except  that  since  the  discount  on  all  items  of  this  order  is  the  same, 
it  can  be  deducted  from  the  total  as  shown  in  the  copy  of  the  invoice  following.  Compare  the 
detached  form  32  with  the  one  shown  on  opposite  page  and  observe  that  the  pen  written  part  has 
been  filled  in  in  your  office. 

/«LL  CLAIMS  FOR  SHORTAGE  OR  DAMAGE   MUST   BE  MADE   VA/ITHIN  TWO  DAYS  FHOM  RECEIPT  or  SHIPMENT        REFER  TO  ORDER  NUMBER 

Chester  W.  Mxk 

JOBBER  IN  GROCERIES  AND  GROCERS  SUNDRIES 
COLLEGE  CITY   Y.  S. 

Order  NO        6  February   15,    19 . 

Salesman  Sold  to  p,         H.        Bi:rnH     , 

Terms  60d3.  Z/lO   note  30d  g  .  Girard,  Y.  3. 

^""""""^"^"'^"'^     356, .-362, 
4   brls.  Granulated  Sugar, 359, 363, 1440#        5    65     81  46 
10    "     Ronan  Beauty  Apples  3  20     32  00 

20    "     "rillabury's  Best"  Flour, l/4brl. ska .  6  60    132  00 

245  46 
Less  12  1/2  %  30  68  $214  78 

6i.  February  2i.  Mr.  Burke  settles  with  the  Keystone  Company  in  full  for  the  last  invoice 
received,  remitting  the  note  of  Anderson  &  Anderson  with  his  own  note  for  the  balance  and 
claiming  the  discount  of  i%.  This  is  not  presented  as  a  usuaP  or  customary  business  trans- 
action, although  it  is  a  possible  one.  It  is  presented  here  for  the  purpose  of  bringing  to- 
gether into  one  combined  entry  several  accounts  that  the  student  is  liable  to  confuse,  and  which 
he  must  learn  to  carefully  distinguish.  Take  the  note  of  Anderson  &  Anderson  out  of  your  cash 
drawer  and  endorse  it  across  the  left  end^  for  transfer  to  the  Keystone  Company,  exactly  as  in 
the  form  below,  signing  Mr.  Burke's  name,  per  your  own  as  attorney  in  fact,  as  you  did  to  the  ac- 
ceptance in  57.     Deliver  it  by  placing  it  in  Envelope  No.  5.    Vouchers  for  Others. 


1.  The  usual  course  of  business  in  this  transaction  would  be  to  discount  the  note  at  your  bank  and  then 
either  give  your  note  for  the  full  amount  of  the  invoice  or  pay  cash  for  the  part  now  paid  by  Anderson  & 
Anderson's  note  securing  a  2%  discount  on  that  part  of  the  payment.  This  would  not,  however,  result  in  bring- 
ing together  into  the  same  entry  for  comparison  and  study  the  pairs  of  often  confused  accounts.  Bills  Receiva- 
ble with  Bills  Payable,  and  Interest  and  Discount  with  Merchandise  Discount,  which  is  one  object  in  making 
the  transaction  as  above. 

2.  Never  ''stand  on  your  head"  to  endorse  paper.  It  is  more  dignified,  and  more  convenient,  for  you,  and 
more  satisfactory  to  the  banker  or  broker,  or  to  any  person  to  whom  it  is  transferred,  if  you  do  it  in  the  nat- 
ural way.  Lay  the  paper  before  you,  face  up,  as  if  you  would  read  it;  take  it  by  the  right  end,  and  with  your 
right  hand,  and  turn  it  over  toward  you;  endorse  across  the  left  end  just  as  it  lies,  and  the  endorsement  is 
correctly  made.  It  is  very  inconvenient  for  a  banker  to  have  to  turn  a  check  or  note  end  for  end  to  read  the 
endorsement. 


Footnotes  to  Form  32,  Opposite  Page. 

1.  See  footnote  1  under  55  and  observe  that  in  this  case  the  trade  discount  is  deducted  from  the  total 
of  the  invoice. 

2.  References.  Never  write  to  a  firm  to  whom  you  are  a  stranger  and  order  goods  on  credit  without 
giving  them  references  through  whom  they  can  learn  all  about  your  business  ability  and  integrity,  unless 
your  financial  standing  is  so  good  that  you  have  a  rating  in  Bradstreet  or  Dunn.  See  observations  under  51. 
To  write  without  references  indicates  at  once  that  you  are  either  ignorant  of  business  customs  and  regula- 
tions or  that  yon  have  no  standing  in  your  home  community  and  can  give  no  references  that  would  do  you 
any  good.  In  either  case  it  is  a  bad  introduction  to  a  firm  with  whom  you  hope  to  establish  a  business 
credit. 


52 


CAMPBELL'S    ACTUAL    ACCOUNTING 


(a) 


Form  29 


lE  CiTV.  Y.  S-    7^te<^^-<^^<g^^^//^ 19Z_ 

at 


^^^^^*^^,iz>^^  ry  Dollars. 

100 

wlihoui  any  relief  wbaiever  from  ValuailoD  or  Appraisement  laws  of  ibe 
irity  until  paid.    Tbe  drawers  aud  endorsers  severally  waive  presentment 


(b)  In  making  this  entry,  observe  that  this  note  of  Anderson  &  Anderson  is  dated  February 
II,  and  as  this  is  now  the  2ist,  ten  days'  interest  has  accrued,  that  is,  the  note  has  already  earned 
64c  interest  and  is  worth  that  much  more  than  its  face,  which  we  do  not  wish  to  lose  in  trans- 
ferring the  note.  We  will  therefore  claim  from  the  Keystone  Company  a  credit. 

First,  for  1%  Discount  on  the  amount  of  the  invoice^ $     7.44 

Next,  for  the  face  of  the  Anderson  &  Anderson  note 382.88 

Next,  for  10  days'  interest  accrued  on  the  note .64 

And  last,  for  our  (C.  W.  Burke's)  note   to  balance 353-14  $7i4- — 

and  will  make  entry  as  follows: 


7' 


'^y;^ 


7 


1.  The  student  will  carefully  note  the  appearance  of  both  Interest  and  Discount  and  Merchandise  Discount 
Items  in  the  entry  and  study  the  distinction  between  them,  that  he  may  never  have  any  difficulty  hereafter  in 
deciding  to  which  account  a  discount  belongs.  Observe  that  the  1%  thrown  off  the  bill  is  to  secure  payment 
or  part  payment  by  cash  or  a  note  is  Mdse.  Discount,  while  the  interest  accrued  on  the  note  (or  the  discount 
In  case  this  note  had  been  sold  for  less  than  its  face)  goes  to  the  other  account.  Consult  your  teacher,  if  neces- 
sary, to  get  a  complete  understanding  of  this  point. 


CAMPBELL'S    ACTUAL    ACCOUNTING  53 

Your  letter  to  accompany  this  remittance  should  be  in  form  very  much  as  presented  below. 
Copy  it  neatly  on  your  letter  paper,  signing  your  own  name  in  place  of  that  of  T.  H.  E.  Student. 
Then  write  out  Mr,  Burke's  note  at  30  days,  for  the  balance  of  $353.04,  and  attaching  both  this 
note  and  the  note  of  Anderson  &  Anderson,  endorsed  as  in  61  (a),  to  your  copied  letter,  place 
them  in  Envelope  No.  5,  Vouchers  for  Others. 


Cljester  W.  iSurfee 

JOBBER  IN  GROCERIES  AND  GROCERS  SUNDRIES 
COLLEGE  CITY  Y   S. 


The   Kflystono    Conpany, 
Chicftco,    111. 

Gentlemen: 

Desiring  to  take  advantaco  of  your  1%   diecount  Tor 
payment  by  note,  I  am  enclosine  you  here7»lth  a  well 
secured  note  endorsed  to  you,  i*ith  ny  6t»n  note  at  30 
days  for  balance,  in  full  payment  of  your  invoice  of 
February  14.   Please  credit  my  account  as  follows: 
Mdse.  Disct.,  1%   of  invoice,  -----$   7,44 

Note  of  Anderson  &  Anderson,  -----   362.68 

Accrued  interest  on  A*&  A.  note,  -  -  -      .64 
Hy  note  at  30  days  ----------   353.04 

Total  credit  --  -------  $747.00 

For  the  remaining  item  of  account,  your  invoice  of 
January  5,  I  shall  be  pleased  to  honor  your  draft  at 
Jtaturity,  if  I  do  not  renpit  sooner. 

Very  truly  yoxxrs, 

C,   W.    Burke. 
2  Enclosures.  .^ — -^ 

Pebrnapy  21, 
19... 

62.  Detach  from  Prepared  Blanks  Forms  33  and  34,  observing  that  33  is  an  order  for  goods 
and  that  34  is  the  enclosed  draft  referred  to.  Enter  prices,  make  extensions  and  add  other  billing 
memoranda,  as  indicated  by  the  writing  in  the  form  No.  33.  Then  make  out  the  bill,  deducting 
a  credit  for  the  cash  with  2%  discount  on  the  amount  of  the  bill  that  is  paid  by  the  remittance, 
and  making  the  terms.  Draft  at  50  days  for  Net  Balance.  Observe  carefully  the  form  of  invoice 
rendered  by  Armour  and  Company,  in  16,  noting  carefully  that  in  the  order  the  quantities  pre- 
ceded the  description  of  the  goods  wanted,  while  in  the  invoice,  unit  quantities  follow  the  de- 
scription of  the  goods  and  immediately  precede  the  prices.  For  a  form  of  acknowledgment  of  the 
receipt  of  part  payment  by  note  and  discount  see  the  form  shown  on  the  order  in  the  memoranda 
for  the  billing  clerk,  and  follow  it  in  making  out  your  bill.  Present  this  invoice  to  your  teacher 
for  criticism  before  placing  it  in  your  Vouchers  for  Others. 


1.     The  word,  per,  is  omitted  in  modem  business  in  the  correspondence  of  many  business  houses,  espe- 
cially when  the  signature  is  a  firm  name,  the  signature  of  the  writer  appearing  immediately  beneath. 


54 


CAMPBELL'S    ACTUAL    ACCOUNTING 


(a) 

Form  33 


anderson  &  anderson 
Groceries, 


ALBIA.  Y.  S. 


February  19,  191_«. 


Mr.  C.  W.  Burke, 

College  City,  Y.  S. 
Dear  Sir: 


brl 


Please  send  us  by  first  freight :- 

100  brls.  "Pillsbury  Best"  Flour  in  }i 

60  ' '  Jenneting  Apples. 

50  Doa.  Star  Sliced  Bacon 

100  "  VB  Corned  Beef 

60  "  ' '  Roast  Beef 

60  "  "  Chili  Con  Carne 

100  "  <<    Corned  Beef  Hash 

ZO     "  ' '    Chicken  Loaf 

ZO     "  ' '    Roast  Mutton 

Z5     "  ''    Bnls.  Pigs  Feet 

20  ' '  Columbia  Bologna 

6  Brls.  Star  Hams  -  // oo  % 
100  lbs.  Star  Bacon  Narrow —  /o/ff 

1  Crate  VB  Sliced  DBf  Insides  —  ;Z^* 


We  enclose  you  herewith  draft  on  Chicago,  for  $980.21 
to  apply  on  account,  and  will  be  pleased  to  accept 
your  draft  at  30  days  for  the  balance. 

Thanking  you  in  advance  for  prompt  attention  and 
immediate  shipment,  we  remain. 

Very  truly  yours. 


sks  c^^.asfi/ 

'•  ii,.a¥- 

•  /'OX. 

•  z  /i 

•  /// 


/  OZ.oo 
<£"/■  oo 

/ff  oo 
^AS  Ho 
¥3  Zo 

^f  oo 


Anderson  &  Anderson. 


M^. 


(b)  In  advanced  bookkeeping  this  transaction  would  receive  its  sales  entry  through  the  Loose 
Leaf  Sales  Book,  while  Anderson  &  Anderson  would  receive  credit  for  the  cash  remitted  and  for 
the  discount  through  the  Cash  Book.  Following  this  plan  as  closely  as  you  can  while  using  the 
Daybook-Journal  you  will  first  make  entry  for  the  sale  as  in  former  sales  (see  especially  23  (d) 
and  then  make  a  second  entry  for  the  cash  received  and  the  discount  allowed,  similar  to  the 
entry  for  the  transaction  in  58,  except  that  Cash  is  the  principal  debit,  instead  of  Bills  Receiva- 
ble. Many  texts  instruct  the  student  to  make  all  in  one  entry,  but  by  so  doing  Anderson  &  Ander- 
son's debit  would  show  only  the  net  balance  of  $863.67,  while  it  is  a  principle  of  modern  book- 
keeping that  a  personal  account  should  show  the  total  of  all  transactions.  You  will  draw  a  draft 
on  Anderson  &  Anderson  at  30  days  for  the  net  balance  and  send  it  out  with  the  invoice  as  you 
did  in  the  case  of  the  sale  to  McConnell  &  Co.  in  49,  but  will  make  no  entry  for  the  draft  until 
it  is  returned  accepted.    See  49,  50  and  51. 


CAMPBELL'S    ACTUAL    ACCOUNTING 


55 


63.     The  following  letters  just  received  are  self  explanatory: 
(a) 


.References': 
First  natiohi  B«nk 
Farmers  union 


In  Answerino  Refer  to  Number- 


ATTORHtYslSO-  TOMPKINS 
I  H.  C.  JONES 


PORTER   BUILDING 

College  Center,  Y»  S» 


TeLEPHONE.  Main  744 


Febrnery  19, 


Mr,  C.  W.  Burke, 

Coll«e«  City,  Y,  3* 

Dear  Sir: 

The  undersigned,  havinc  been  appointed  trustee  of  the 
estate  of  H.  U.  Goble  an  insolvent  debtor,  holds  your  ac- 
oeptanoe  for  $195  due  March  13,  191_.   It  being  desirable 
to  oolleot  all  accounts  at  the  earliest  i^oSsible  date,  I 
am  authorised  to  discount  at  6^  per  annum  all  ansets  not 
due  that  can  be  collected  prior  to  March  1. 

Hoplne  that  it  may  be  convenient  for  you  to  take  ed- 
vantage  of  this  discount  and  that  I  may  have  the  remits 
tance  on  or  before  the  date  named,  I  am. 

Very  truly,  yours, 

A.    G.^Wilkiap,    Trustee. 


(b) 


F.  H.VBURNS 


SOS  SoA»ttv"5utmnitJ\irt, 


<X^S^ 


OIRARD,  Y.  S. 


February  20,    19 


Mr.    C.    W.    Burke, 

College    City,    Y.    S^ 


19 


Dear  Sir:-  1   enclose  herewith  my  check  for  one  hun- 
dred dollars  to  apply  on  account  of  your  Invoice  of  the  15th. 
This  with  thQ  discount  allowed  by  the  terras  of  your  bill  en- 
titles rae  to  a  credit  of  %\ti7r .      Ploaee  acknowlodee  receipt 
and  bbi.ie©t 

Yours  truly. 


1  3nolo3ure» 


^.c?^.  C§,<^^^^^^^<i^. 


56 


CAMPBELL'S    ACTUAL    ACCOUNTING 


64(a).  Endorse  and  deposit  the  draft  received  from  Anderson  &  Anderson  in  63  following 
instructions  in  17  and  18;  then  draw  a  check  in  favor  of  A.  G.  Wilkins,  Trustee  of  H.  M.  Goble, 
Insolvent,  for  $194.35,  which  is  the  amount  of  your  acceptance  less  discount  at  6%  for  20  days. 
Be  careful  in  writing  the  name  of  the  payee  as  indicated  above,  when  making  out  the  check,  and 
write  closely  or  you  will  not  be  able  to  get  it  all  on  the  line.  Write  a  letter  to  accompany  the 
remittance  (see  letter  in  61),  attach  check  to  letter  with  a  pin,  or  other  fastener,  and  place  both 
in  Envelope  No.  5.  In  making  your  entry  consult  57  (c)  for  your  debit,  and  credit  cash  for  the 
amount  of  the  check  and  Interest  and  Discount  for  the  amount  of  the  discount. 

(b)  The  letter  in  63  (b)  is  received  from  F.  H.  Burns,  to  whom  an  invoice  of  goods  was  sold 
on  the  15th.  Detach  from  Prepared  Blanks,  Form  35,  observing  that  it  is  the  enclosure  described 
in  the  letter,  and  make  entry  debiting  Cash  and  Mdse.  Disc't^  and  crediting  F.  H.  Burns.  See 
62  (c),  entry  for  the  credit  of  A.  &  A. 

65.  Mr.  Burke  having  arranged  to  take  Mr.  C.  A.  Foley  into  his  business  as  a  partner,  it 
becomes  necessary  to  take  a  complete  inventory  of  stock  and  to  close  the  books  that  Mr.  Burke's 
present  worth  may  be  known  as  a  basis  for  the  contract.  As  no  posting  has  been  done  since 
the  15th  the  first  thing  for  you  to  do  is  to  post  all  the  unposted  entries  of  your  journal,  carefully 
following  the  plan  of  the  previous  instructions  for  posting  as  given  in  Sections  28  to  45,  carefully 
adding  all  accounts  in  pencil  as  before  and  including  in  the  addition  of  each  column  the  pencil 
footing  of  the  previous  posting^. 

(a) 


^i^p^r-^y^^^^i^. 


2f. 


BALANCE  BROUGHT  FORWARD 


Deposited^ 

Ck.  No.j/L    Drawn 
In  favor  of 


ij^^e222<: 


Amount  of  Bill,  or 
Payment  to  be  made 
■Bisfount-, 


Deposited^ 


Amount  of  Check 
Balance 


3roa 


Ck.  No..iJZ.  Drawn 
In  favor  of 


inA^Otoa. 


-c/ij^/a^ 


^■^a. 


^£ 


Amount  of  Bill,  or  1 
Payment  to  be  made  I 
Discount,       2. <; 


fjj-^giut 


Amount  of  Check 
Balance 


Deposited. 
^f  Ck.  Afr)      (.     Drawn 


In  favor  of 


tv,-  ^^.^.-^.^-txyi^  yi^e<y^J^ 


Amount  of  Bill,  or\ 
Payment  to  be  made  f 
Discount. 9 


Amount  of  Check 
Balance 


/s^K 


66.  Proving  Cash  is  the  First^  Step 
in  any  closing  of  the  books,  since  in 
doing  this  the  accountant  may  discover 
errors  that  would  otherwise  go  into  the 
trial  balance,  and  cause  the  taking  of 
it  a  second  time.  Read  carefully  the 
instructions  for  the  former  closing  of 
Cash  in  45  (a),  observing  that  at  that 
time  part  of  your  money  was  in  the 
bank  and  part  (one  check  for  $1,293.08) 
in  the  cash  drawer  or  safe,  while  at  this 
time  the  undeposited  cash  consists  of 
$6.00  in  currency  and  the  check  of  F. 
H.  Burns  for  $100.00.  To  the  left  is 
shown,  in  form  (a),  the  same  page  of 
check  stubs  that  was  shown  in  45  (a). 
Observe  that  the  balance  for  January 
10  is  the  same  in  both  forms,  but  that 
in  this  form  (a)  a  later  deposit  has 
been  made  (on  Jan.  15)  and  the  third 
check  of  the  page  has  been  drawn, 
making  the  balance  at  the  foot  of  the 
page   $1,558.00,   which   is   carried   for- 


1.  Observe  that  if  this  discount  were  computed  by  dividing  by  .98,  or  according  to  the  short  method  pre- 
sented in  21,  the  Mdse.  Disct.  would  amount  to  $102.04,  but  in  small  remittances  the  odd  cents  are  not  otten 
claimed,  it  being  most  convenient  to  compute  the  discount  on  the  amount  remitted. 

2.  The  only  exception  to  this  rule  for  including  previous  pencil  footings  in  the  addition,  is  when  an  ac- 
count has  been  balanced  and  closed  by  the  double  closing    lines     (48,    2).      tiever    add    across    Double    Clos- 

3.  Here  the  Posting  seems  to  be  the  first  step.  This  is  necessarily  so  when  the  Journal  is  used  as  the  only 
book  of  original  entry,  but  when  the  Cash  Book  is  used,  as  it  is  in  some  form  in  every  important  business,  the 
proving  of  Cash  always  precedes  posting  and  is  the  first  step  in  every  closing    . 


CAMPBELL'S    ACTUAL    ACCOUNTLNG 


57 


(b) 


^Vt^J/^.,^r^^**»uiur. 


aALANCE  BROUGHT  FORWARD 

Deposited /S 

In/aiior  ot 


"J^l^.^^^&.tt- 


For] 

Amount  of  Bill,  or\ 
Payment  to  be  made  j 
Discount. Jt . 


$/an.' 


Amount  oj  Check 
Balance 


■  ^^/ 


Deposited. 

Ck  No.^S^   Drawn.  -^^ /J^lSl^ 


FT-     ,^-<^^^--^^-^ 


Amount  of  Bill,  or\ 
Payment  to  be  made  f 
Discount, % , 


//3 


f 

Amount  of  Check 
Balance 


Wy/~ 


2/   Deposited. 

Ck.  No. 
In  favor  6f 

For 


.^^ 


£2,£_2^/9y_ 


Amount  of  Bill,  or\ 
Payment  to  be  made  j 
Discount.  y-4>*C  ^fjlo-'    f 


f/f-r-' 


Amount  of  Check 
Balance 


ward  to  the  top  of  the  next  page  of 
stubs,  as  shown  in  form  (b). 

This  form  (b)  shows  the  condition 
of  your  check-book  to  date.  Note  the 
record  of  the  deposit  of  the  sight  draft 
drawn  on  February  lo  and  the  entry 
for  the  collection  of  J.  C.  Dowell  & 
Co.'s  note.  (See  53  and  54.)  Observe 
also  the  deposit  of  Anderson  &  Ander- 
son's draft  on  Chicago  and  the  check 
in  favor  of  A.  G.  Wilkins.  Observe 
that  the  frequency  of  deposits  necessi- 
tated balancing  the  check-book  every 
time  a  check  was  drawn,  giving  no  op- 
portunity for  the  practice  of  combined 
addition  and  subtraction.  Observe 
further,  that  the  check-book  balance 
of  $818.39  lacks  $106.00  of  being  the 
total  of  cash  in  your  possession  as 
shown  by  the  Cash  account  of  your 
ledger,  that  is,  the  $818.39,  cash  in  the 
bank,  plus  the  $106  in  your  cash  drawer 
is  the  exact  amount  necessary  to  bal- 
ance Cash  account. 


(c)  To  "Find  Cash,"  when  the  balance  does  not  prove  as  above,  the  most  satisfactory 
method  that  the  author  has  tried  with  beginners  in  an  experience  of  nineteen  years  of  teaching 
by  "actual  business"  methods,  is  presented  in     (d)  in  what  we  will  term  an  Analysis  of  Cash. 


Arrange  four  columns  as  in  (d)  following.  Let  the  student  first  enter  the  figures  of  his  last 
preceding  cash  balance  on  the  debit  side,  placing  the  amount  that  was  in  the  bank,  in  the  bank 
column  and  the  amount  that  was  in  the  cash  drawer  or  safe,  in  the  safe  column,  entering  the 
safe  items  as  you  would  if  listing  checks  and  currency  for  deposit  (See  18).  Next  let  the  student 
copy  into  the  credit  bank  column  all  the  credit  items  of  his  cash  account  that  were  paid  out  by 
check,  placing  all  others  in  the  credit  safe  column. 

'  When  this  is  done,  do  not  add,  but  take  up  the  check-book  and  commencing  with  the  last 
preceding  balance  (the  number  which  is  entered  at  the  head  of  the  debit  bank  column)  check, 
both  in  check-book  and  on  proof  sheet,  first,  the  checks  drawn,  to  see  if  they  agree  with  the  num- 
bers in  the  credit  bank  column.  If  you  find  a  check  drawn  in  the  check-book  that  is  not  in  the 
credit  bank  column,  it  may  be  a  cashed  check,  in  which  case  you  will  enter  the  amount  in  both 
the  credit  bank  column  and  the  debit  safe  column  (see  (e)  following),  or  it  may  be  an  omitted  or 
incorrect  entry  (unless  you  have  inadvertantly  placed  it  in  the  credit  safe  column).  Look  it  up 
and  correct  it,  both  in  your  books  and  on  the  proof  sheet. 

Second,  check  over  the  deposits,  beginning  at  the  same  point  in  the  check-book,  as  fol- 
lows: Check  both  in  the  check-book  and  in  the  debit  safe  column  of  the  proof  sheet,  the  items 
of  each  deposit,  copying  the  items  into  the  credit  safe  column  and  entering  the  total  of  each  de- 
posit in  the  debit  bank  column  of  the  proof  sheet.  When  this  checking  of  the  deposits  in  this 
manner  is  completed,  add  all  the  columns,  and  the  diflference  between  the  footings  of  the  bank 
columns  will  show  what  the  check-book  balance  should  be,  the  diflference  between  the  footings  of 


58 


CAMPBELL'S    ACTUAL    ACCOUNTIX 


(4) 


CASH      PBOOP      8HBST 


•BANK 
$   414   92 


$4137    74 

3519    35 

%   816    39 


Debits 


J«    C.    D* 
St.    Dft. 
Sote    Col. 
Chi.    Dft. 


Cheok- 

Boolc 

Balance 


plus 


SAPS 

$1293  08 
150  00 
1299  53 
980  21 
100  00 
/^^  — 

$3922   82 

5816    62 

106  oa< 


Cr94lts 


fBalaneel 
In  Cash 
iDrax^er 


B  A   K  K 

%   150   00 

2875    00 
194    35 


$3319    35 

iBalance 
of  Cash 
Aocouat. 


SAPS 

$      50    00 

42    00 

2    00 

/s-a  — 
$3816    62 


the  safe  columns  will  show  how  much  cash  should  be  found  in  the  cash  drawer  or  safe,  while  the 
sumi  of  these  two  differences  will  show  what  the  balance  of  cash  in  the  ledger  should  be,  pro- 
vided, of  course,  that  all  the  work  of  the  proof  sheet  is  correct. 

If  there  is  a  disagreement  in  the  check-book  balance,  look  for  it  in  the  additions  and  subtrac- 
tions of  the  check-book ;  if  in  the  balance  of  cash  in  the  safe,  look  first  to  see  that  every  item  in 
the  credit  safe  column  represents  either  an  item  deposited  and  checked  in  the  debit  safe  column, 
or  cash  actually  paid  out  to  some  one  either  in  currency  or  by  the  transfer  of  a  check  or  sight 
draft.     Sight  drafts  drawn  should  not  be  found  in  this  column,  although  that  is  a  common  mis- 


1.    Sum,  in  the  Algebraic  sense.     If  the  bank  balance  be  an  overdraft  it  will  be  an  arithmetical  difference. 

N.  B.    In  mtlrint  enirls*  of  notes  or  drafts  fill  ill  blanks  except  those  Included  under 


67 


BILLS 


When 
Received 


Kind  of 
Paper 


Date  of 
Paper 


Time  to 

Run 


MATURITY 


Account  Credited 
in  Ledger 


Face  of 
Paper 


Rate  & 


-^p^^   (/a^Ji. 


^.9(2^ 


jl/L 


^^^L^^tsk^^ 


/2.f>l 


2il^ 


Z 


■A^ 


^^ 


>%ttft^ 


^ 


d^^^^^Z2!Z2£^^^^:^A 


x<ei^ 


//_ 


'^^ 


^ 


^^ 


z^ 


6Z<i.*^\r^^^fl-*.*i^^ 


^ 


68 


N.  B,      In  making  entries  of  t 


1  or  drafts  fill  all  blanks  except  those  tndaded  under. 


BILLS 


Vhco 
CIvep 


Kind  of 
Paper 


Date  of 
Paper 


Time  to 
Run 


MATURITY 


Jan     Feb    Mar     Apr.    May 


Aug    Sepl     Oct     Nov     Dec 


PAYMENT    DATA 


_z 


-  \^aaa./j^ 


^fai^^  \/ia<t.y/a 


//_ 


2 


S^ 


^ 


A^S^// 


.j^^. 


61. 


/^  .21 


ZL 


^^ 


^ 


/f^Zs:  —^ 


UL 


.^^ 


hi 


1.  When  a  note  or  acceptance  in  either  class  is  settled  for  less  than  its  face,  let  the  total  face  of  the  paper 
appear  in  the  money  column  in  two  items  as  in  Bills  Payable  No.  2  above,  showing  both  the  entire  payment  of 
the  note  or  draft  and  the  fact  that  it  was  discounted.  When  payment  is  made  with  interest  use  the  interest  col- 
umn, as  the  paid  money  column  must  never  contain  more  than  the  face  of  the  note.  The  interest  rate  column 
can  be  used  for  either  the  rate  of  interest  or  the  rate  of  discount. 


CAMPBELL'S    ACTUAL    ACCOUNTING 


59 


take  with  beginners.  If  the  result  still  does  not  agree  with  the  cash  in  safe  the  difference  probably 
represents  cash  received  or  paid  out,  without  entry,  the  former  "cash  over"  and  the  latter  "cash 
short,"  and  if  these  transactions  cannot  be  certainly  recalled  and  entry  made,  "cash  short"  must 
be  charged  to  the  cashier  in  charge,  who  must  make  it  good,  and  "cash  over"  to  a  Suspense  ac- 
count, until  it  is  discovered  to  whose  account  it  should  have  been  credited. 

If  the  check-book  balance  and  the  cash  in  safe  prove  as  above,  and  the  balance  of  cash  in 
the  ledger  does  not  prove  as  stated  above,  then  you  know  the  mistake  is  in  the  additions  and  sub- 
traction of  the  Cash  account,  or  in  the  addition  of  the  column  differences  of  the  proof  sheet,  every- 
thing else  having  been  proven. 

(e)  Observe  that  the  typewritten  figures  of  the  proof  are  from  the  ledger  account  and  that 
the  script  figures  represent  the  work  done  while  checking  with  the  check-book.  Note  that  the 
check  that  was  drawn  in  favor  of  Cash  for  $100.00  in  52  (b)  does  not  appear  until  it  is  found  in 
going  over  the  check-book  (because  there  was  no  entry  made  for  it)  that  it  is  entered  on  the  proof 
sheet  as  a  credit  to  the  bank  and  a  debit  to  the  safe,  to  preserve  the  balance.  Observe  also  that 
it  went  into  the  safe  and  was  paid  out  of  the  safe  in  the  items,  $50,  $42  and  $2,  leaving  a  balance 
of  $6.00. 

(f)  Ruling  Cash.  Having  proved  your  cash,  that  is,  found  that  the  cash  on  hand,  whether 
in  the  bank  or  in  the  safe,  or  in  both  places,  is  exactly  the  amount  that  your  Cash  account  (or  cash 
book)  shows  you  should  have,  you  will  proceed  to  enter  the  cash  balance  in  the  cash  account  in 
red  in  the  right  hand  column,  and  to  rule  and  close  the  account  exactly  as  the  cash  account 
is  ruled  and  closed  in  Model  Ledger  No.  2,  on  page  78.  Be  careful  also  to  bring  down  the  bal- 
ance after  closing  exactly  as  shown  in  the  Model  Ledger  No.  2. 

'Collection  Data."    These  are  to  be  filled  when  the  paper  Is  collected  or  discounted. 

RECEIVABLE 


COLLECTION     DATA 


Amt.  of  Im.  Face  CB  How  Disposed  of 


Names  and  Addresses  of  Parties 


Maimer  or  Acceptor 


Endorser  or  Drawer 


^^^^^^^ 


J^^ 


/a 


L^a£  1 


■^ 


^/f2-rk' 


^.4-e$^;^g^>^^^-^ 


^^ 


^^ 


U. 


'^^Y^^. 


i^^^ 


^"±7  '"'- 


y^^^^.^^,    ^  S- 


T^  "t^,  '^■^^-rr^^-'C'/^ 


^^^^^^'^r     ^^ 


Payment  Dju        These  are  to  be  (illcd  when  the  note  or  draft  is  paid 


PAYABLE 


Face  0! 
Paper 


Account   Charged 
in  Ledger 


Where 

Payable 


Names  and  Addresses  of  Parties 


In  Whose  Favor 


Drawer   or   Endorser 


fAr/> 


&l 


_^^^ia2fc«:*^iLi_i:£3^1«%i 


^k^stitSsfH 


""ZV^?^-^^— ^-^-*^ 


J.^- 


^;^^-r^t^t^; 


T:::y^.y^-ga^<-<*--;»-/— ^^^-»*-<^<>^ 


y^^/JL-AA,, 


dJ2. 


'6L ^'^^.^t./l^i^-^J^^ 


^:^s^ 


^3^ 


y^^  '-r=i^<»-- 


'-«rr^r. 


I 


69.  To  Prove  Bills  Receivable  and  Bills  Payable  Accounts  is  the  next  step  in  making 
a  closing  of  the  books.  This  was  omitted  in  the  former  closing,  partly  to  avoid  confusing  the 
student  by  the  presentation  of  too  many  new  things  at  once,  and  partly  because  the  simple  con- 


6o  CAMPBELL'S    ACTUAL    ACCOUNTING 

dition  of  these  accounts  at  that  time  made  it  unnecessary.    It  is  introduced  now  as  a  step  not  to 
be  omitted  by  the  student  in  any  regular  closing  of  the  books. 

(a)  Bills  Receivable.  By  comparing  your  ledger  account  of  Bills  Receivable  with  the  bill 
book  page  presented  in  67  preceding,  you  will  observe  that  the  amounts  of  the  notes  received  are 
identical  with  the  debit  of  the  ledger  account,  and  that  the  one  note  marked  Paid,  and  the  one 
marked  Transferred,  together,  make  the  credit  of  the  ledger  account.  To  complete  the  proof,  you 
should  have  in  your  possession  in  your  safe  all  other  notes  described  in  the  form  in  67  as  received 
and  not  yet  paid.  This  being  the  fact,  you  will  put  this  proof  on  record  in  your  journal,  next  fol- 
lowing the  last  transaction  recorded,  as  follows: 

Bills   Receivable  on  Hand. 
No.  2,  Acceptance,  2/10 — ,  30  days,  McConnell  &  Co., $648.47 


Total  unpaid  in  bill  book  and  balance  of  ledger  account $648.47 

Note.  Observe  that  Bills  Receivable  is  debited  when  received  and  credited  when  paid;  and  that  Bills 
Payable  is  credited  when  notes  are  issued  and  debited  when  they  are  paid,  and  find  out  why  this  is  so.  Yoa 
will  be  called  on  to  answer  the  question  later. 

(b)  Bills  Payable.  The  proof  of  Bills  Receivable  was  much  like  the  proof  of  Cash  inas- 
much as  the  actual  notes  are  in  your  possession  to  verify  the  records  of  the  ledger  and  bill  book. 
This  is  lacking  in  the  proof  of  Bills  Payable  as  the  notes  are  not  in  your  possession,  but  in  the 
possession  of  those  to  whom  they  were  given.  See  column  marked,  "In  Whose  Favor,"  in  bill 
book  form  in  68. 

The  best  proof  that  is  possible,  therefore,  is  to  observe  that  the  items  posted  to  the  credit 
side  of  the  Bills  Payable  account  in  the  ledger  are  identical  with  the  face  of  the  notes  recorded 
as  given  in  the  bill  book,  and  that  the  note  indicated  as  paid  in  the  bill  book  form  (68  above)  cor- 
responds to  the  debit,  or  record  of  notes  paid,  in  the  Bills  Payable  account  in  the  ledger.  The 
record  of  this  proof  you  may  enter  in  your  journal,  next  following  the  proof  of  Bills  Receivable,, 
as  follows: 

Bills  Payable  Outstanding. 

No.  I,  Note,  i/iq/ — ,  60  days,  Favor  Armour  and  Company $  940.08 

No.  3,  Note,  2/21/ — ,  30  days  Favor  The  Keystone  Company 353-04 

Total  unpaid  in  bill  book  and  balance  of  ledger  account $1,293.12 

Note.  Those  familiar  with  bill  books  of  the  ordinary  type  that  has  been  used  for  years,  remaining  un- 
changed through  all  the  advances  made  in  other  business  methods,  will  appreciate  the  advantageous  features 
of  the  bill  books  presented  for  the  use  of  the  student  through  this  course  of  study.  The  compact  presentation 
of  all  data  relating  to  maturity  at  the  beginning  of  the  record,  the  central  arrangement  of  the  figures  show- 
ing the  face  of  notes  and  the  amount  collected  or  paid,  with  the  amount  of  interest  collected  (or  discount 
allowed),  and  the  names  and  addresses  of  the  parties  at  the  right  for  reference  purposes,  constitute  an 
arrangement  that  is  convenient  for  use  either  as  an  auxiliary  book  or  for  use  as  a  ledger  and  book  of  original 
entry  in  the  economies  of  modern  accounting.  It  is  used  in  this  introductory  work  as  an  auxiliary  record  only; 
later,  its  use  in  modern  accounting  methods  will  be  presented. 

(c)  Now  take  the  bill  book  from  your  actual  business  supplies  and  using  the  first  double 
page  on  each  side  of  the  book  (observe  that  one  side  is  for  Bills  Payable  and  one  for  Bills  Receiv- 
able), copy  therein  all  the  records  of  notes  and  drafts  shown  in  the  forms  67  and  68. 

70.  Having  proved  Cash  and  ruled  it,  and  proved  Bills  Receivable  and  Bills  Payable,  the 
next  step  is  to  take  a  trial  balance  of  your  ledger  to  prove  all  other  postings  and  the  additions^ 
The  work  of  taking  this  trial  balance  will  be  similar  to  that  of  46.     Observe,  however, 

(a)  that  Cash  being  balanced  shows  only  a  debit  in  the  trial  balance, 

(b)  that  all  accounts,  even  those  in  which  the  debits  and  credits  were  equal,  were  included 
in  the  preceding  trial  balance  (See  46  foot  note)^ 

(c)  that  two  personal  accounts  should  be  ruled  and  omitted  from  this  balance,  Henry  M. 
Goble  among  your  creditors  and  J.  C.  Dowell  &  Co.  among  your  customers,  because  both  firms 


CAMPBELL'S    ACTUAL    ACCOUNTLNG 


6i 


have  gone  out  of  business.  Rule  their  accounts  as  in  Model  Ledger  No.  2,  before  proceeding. 
Accounts  that  are  active  are  left  open  during  the  year  that  they  may  show  the  entire  amount 
of  your  dealings  with  the  firm  and  enable  you  to  make  comparisons  of  the  business  of  one  year 
with  aijother,  and  all  such  should  go  into  your  trial  balance,  showing  exactly  the  face  of  your 
ledger.  When  accounts  of  this  class  are  balanced  by  regular  payments  as  each  invoice  matures, 
this  is  indicated  either  by  a  single  red  line  ruling,  as  in  the  account  of  the  Pillsbury  Flour  Mills 
Co.,  or  by  checking  opposite  the  items  as  in  the  account  of  Armour  &  Company.  The  footings 
being  carried  forward,  the  latter  plan  is  the  neater  and  the  better.     See  Model  Ledger  No.  2. 

71.  If  your  work  is  correct,  your  trial  balance  at  this  time  will  be  as  presented  in  the  form 
in  72  (e)  3d  column.     If  incorrect, — 

1st.  Determine  the  exact  error.  So  long  as  the  amount  of  the  error  changes  with  every 
addition  of  the  ledger  or  trial  balance  the  error  is  probably  only  in  adding,  and  you  may  just 
as  well  stop  right  where  you  are  until  you  have  learned  to  add. 

2d.  When  you  are  certain  of  your  additions,  divide  the  amount  of  the  error  by  2  and  then 
look  carefully  over  the  trial  balance,  and  through  the  books  from  which  you  have  posted,  to  see 
if  you  can  find  either  the  whole  amount  of  the  error  omitted  from  one  side,  or  the  half  of  the 
error  posted  to  the  wrong  side  of  some  account.  Also  observe  closely  whether  all  balances  have 
been  properly  brought  down  and  all  accounts  taken  into  the  trial  balance. 

3d.  If  the  remainder  be  exactly  divisible  by  9,  99,  or  999  it  may  be  reversed  or  misplaced 
figures.  For  example  any  two  figures  reversed  as  36  written  63  will  cause  an  error  that  will 
be  exactly  divisible  by  9,  while  the  writing  of  109  as  1.09  would  make  an  error  divisible  by 
either  9  or  99.  Being  divisible  by  9  in  this  case  would  show  nothing,  while  being  divisible  by  99 
would  indicate  that  the  quotient  figures  had  been  misplaced  either  to  the  right  or  the  left.  These 
suggestions  will,  however,  only  be  useful  in  keeping  you  on  the  watch  for  such  errors  while  you 
review  the  posting,  which  is  the  next  step. 

4th.  Review  your  posting,  lightly  check-marking  with  pencil  (V)  each  number,  as  you  pass 
it,  both  in  the  journal  and  the  ledger,  that  you  may  be  certain  to  omit  nothing.  Erase  the  check 
marks  when  the  work  is  complete.  This  will  probably  discover  any  error  that  it  is  possible  for 
you  to  make  in  the  present  work.  If  it  does  not,  proceed  as  in  72  below. 

72.  To  Find  a  Trial  Balance  When  Ordinary  Methods  Fail. 


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62 


CAMPBELL'S    ACTUAL    ACCOUNTING 


(a)  Referring  to  your  last  preceding  trial  balance  recorded  in  your  journal  (see  46),  copy 
from  your  ledger  every  new  item  in  each  account,  using  for  this  purpose  trial  balance  paper  so 
that  you  may  place  all  the  debits  in  columns  to  the  left  of  the  page  and  the  credits  to  the  right 
exactly  as  the  items  of  your  present  ledger  are  copied  in  the  form  preceding. 

(b)  Now  commencing  with  the  first  number  at  the  top  of  the  extreme  left  column,  num- 
ber it,  /,  in  red  ink  as  shown  by  the  red  ink  numbers  in  the  form  below,  and  hunt  for  the  number 
in  one  of  the  right  hand  columns  numbering  it,  i,  in  the  same  manner.  You  will  find  the  credit  for 
this  first  cash  debit  in  the  credit  of  the  Park  Grocery  Co.  The  credit  of  $150  in  Cash  belongs  to 
another  debit.  In  looking  for  credits  to  match  your  debits,  you  should  remember  that  in  making 
your  entries.  Cash  debits  came  in  from  personal  accounts  and  from  Bills  Receivable  almost 
exclusively,  Mdse.  debits  from  personal  credits,  Bills  Receivable  debits  from  personal  credits. 
Bills  Payable  debits  from  personal  credits,  personal  debits  from  Mdse.  credits,  from  Bills  Pay- 
able credits,  and  from  Cash  credits,  etc.  The  credit  of  any  particular  debit  should  never  be 
checked  in  the  credit  of  the  same  account  if  it  can  be  found  anywhere  else ;  indeed,  it  might  as 
well  be  x'd  and  passed  as  unchecked,  as  will  appear  later.  Returning  to  the  left  hand  column, 
number  the  second  number  2,  and  failing  to  find  it  in  any  right  hand  column  of  the  page  place 
an  X  as  shown  below.  Numbering  the  third  number  j,  and  failing  to  find  it,  mark  it  also  with 
an  X,  and  proceed  with  the  fourth  number,  which  you  will  find  and  number  in  one  of  the  right 
hand  columns  of  the  page.  Proceed  in  this  manner  until  all  the  numbers  in  the  left  hand 
columns  are  consecutively  numbered  as  in  this  form  below. 


'^^^»gz^g^g<^..Ae^^«i^ 


<:^^!^^ga!^,^^i^^i^xl-<g-«g^^J:^^ 


y  2 


-''9 


2fzU^.A 


3 
2- 


(oati^^<.£^''J-e- 


2JL 


^7 


/2. 


/J 


/-^1 
/^ 


x/^ 


Y7 


.J^ 


yS^^-^e^^'?, 


/jF^ 


..ZA^ 


i^*^ 


S-£> 


y 


i/ 


22- 


■2-4^ 


^;zX 


7.4^^- 


0/2^.  AM, 


:^^«A^^ 


/  ^2 


:^^^;^2f<v 


/j~ 


/-^/ 


/^£? 


/a 
/J 

/Z. 

// 

2  Z- 


Y7 


■7 


y/y 


7^ 


/^yr 


rr 


(c)  Those  numbers  on  the  left  in  the  form  above  which  you  have  failed  to  find  and  have 
marked  x,  and  those  which  are  not  marked  at  all  on  the  right,  constitute  possible  errors  which 
you  will  now  proceed  to  find  and  correct.  Taking  up  number  2,  $1,299.53  cash  debit  and 
turning  first  to  your  ledger  and  thence  to  the  journal  (guided  by  the  reference  columns),  you 
will  find  that  the  credit  for  this  number  consists  of  $1,293.08  in  Bills  Receivable  and  $6.54  in 
Interest  and  Discount.  Check  both  of  these  numbers  in  the  right  hand  columns  with  the  check 
number  2,  and  remove  the  x  from  the  number  which  you  have  now  found.  Taking  the  third 
number  marked  x,  $100,  and  tracing  it  to  your  journal  you  will    find  that  its  credit  is  $102  in  the 


CAMPBELL'S    ACTUAL    ACCOUNTING 


63 


account  of  F.  H.  Burns,  the  additional  $2  debit  being  the  8th  number  which  is  also  marked  x. 
Check  the  $102  in  F.  H.  Burns'  credit  with  both  numbers,  j  and  8,  and  remove  the  x's."  The 
next  number  marked  x  in  the  left  hand  column  is  the  4th  $980.21  in  cash.  Tracing  it  to  your 
journal  you  find  that  its  credit  is  $1,000.21  in  the  account  of  Anderson  &  Anderson,  the  addi- 
tional debit  being  $20  in  Mdse.  Discount  which  is  also  marked  x.  Check  the  $1,000.21  with  both 
numbers,  4  and  p,  and  remove  the  x.  The  next  number  marked  x  is  the  7th  $3.87  in  Mer- 
chandise Discount.  Tracing  it  to  your  journal  you  find  that  its  credit  is  $386.75  in  the  account  of 
Anderson  &  Anderson,  the  additional  debit  being  number  15,  $382.88  in  Bills  Receivable.  But 
number  15  has  already  been  checked  off  with  the  credit  of  Bills  Receivable  also  numbered  i^,  a 
very  natural  thing  to  do  in  the  first  checking  of  numbers.  It  will  be  necessary,  therefore  at  this 
time  to  erase  the  15  from  the  $382.88  in  Bills  Receivable  credit,  leaving  it  blank,  and  to 
check  the  $386.75  in  Anderson  &  Anderson's  credit  with  the  numbers,  7  and  75.  The  next 
number  marked  with  an  x  is  $195  in  Bills  Payable  debit.  Tracing  it  to  the  journal  you  find  that 
its  credit  is  $194.35  in  Cash  and  65c  in  Interest  and  Discount.  Check  both  these  numbers  with 
number  16  and  remove  the  x.  The  one  remaining  number  marked,  x,  in  any  of  the  left  hand 
columns  is  number  23,  $744,  in  the  Keystone  Company's  account.  Tracing  it  to  your  journal  you 
find  that  it  has  four  credits  to  each  one  of  which  you  will  place  the  number  2j  on  the  checking 
page,  namely,  $382.88  in  Bills  Receivable  (the  number  that  was  checked  75),  $353.04  in  Bills 
Payable,  $7.44  in  Merchandise  Discount,  and  64c  in  Interest  and  Discount.  When  each  of  these 
is  checked  with  the  number  2j,  it  will  be  evident  that  every  debit  has  a  corresponding  credit 
and  the  work  will  appear  as  below,  except  the  footings  which  are  not  yet  computed. 


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(d)  Now,  add  each  one  of  the  little  accounts  as  shown  above,  entering  the  footings  in  red 
ink  in  the  blank  space  left  under  each  account,  and  take  a  trial  balance  of  these  accounts  to  prove 
that  the  additions  are  correct.  Having  carefully  checked  off  every  debit  with  a  corresponding 
credit,  any  failure  of  this  balance  to  prove  will  be  due  to  inaccuracies  in  your  additions,  which 
you  must  overcome  by  persistent  practice.     It  is  useless  to  proceed  with  the  study  of  bookkeep- 


64 


CAMPBELL'S    ACTUAL    ACCOUNTING 


ing  unless  you  can  add,  and  add  accurately.  When  this  balance  proves,  make  a  copy  of  your 
last  preceding  trial  balance  shown  by  the  black  figures  in  columns  No.  i,  in  the  form  below,  and 
write  into  it  the  figures  of  the  red  footings,  in  (c),  exactly  as  they  appear  in  red  in  the  form 
below.  Adding  these  black  and  red  figures  and  extending  them  into  a  new  pair  of  columns, 
numbered  2,  you  will  have  a  key  to  your  present  trial  balance,  and  having  made  the  key  you 
have  a  right  to  use  it.  Now,  copy  your  trial  balance  from  your  ledger  into  the  third  pair  of 
columns  comparing  it  with  this  key  and  wherever  you  find  a  difference  you  have  found  a 
mistake,  unless  the  difference  be  due  merely  to  the  balancing  of  accounts  as  in  cash.  If  any 
mistakes  appear,  look  them  up  and  correct  them,  until  your  work  agrees  with  the  results  shown 
in  the  third  pair  of  columns  in  the  form  below^. 


(e) 


(I) 


(2) 


(3) 


/ 

2 
■s 

f 

9 

/a 
// 
// 
// 


^^:^^y(^^iyi^-^^  ^T^^srj^^;^ 


FROM  PROOF  SHEET 


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/SO 

2s 


3a  f 


a3x/ 


^2 
So  \- 


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'^ar 


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3^2:5 


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33  yj .  'j- 

3^3/ 


7  ■(// 

^a  - 

7   w 


'<^7J<^£ 


^-^i.i'J^ 


yX  a/a  .  '^ 


Vf 


i2>former  balance  and  bal- 
ance OF  NEW  WORK  ADDED 
FORMING  A  KEY  TO  THE  PRES- 
ENT CONDITION  OF  THE  LEDGER 


'/yy^  Sat 


3a2 

2 


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PRECEDING  PROOF. 


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^ 


1.  The  method  of  finding  a  trial  balance  set  forth  in  this  section  72  may  seem  long,  but  a  long  road  that 
leads  certainly  to  the  desired  end  is  usually  shorter  than  a  road  that  may  lead  there  and  may  not.  It  can  be 
used  to  find  any  trial  balance,  and  is  easier  of  application,  though  different  in  form  when  more  advanced  books 
are  used.  The  author  had  occasion  once  to  suggest  this  method  to  a  graduate  of  one  of  the  oldest,  best,  and 
best  known  business  colleges  in  the  United  States  after  he  had  struggled  with  his  trial  balance  in  his  first 
position  for  some  weeks  and  was  about  to  give  up  in  despair,  and  had  the  pleasure  of  hearing  him  say  a  few 
days  later  that  he  had  learned  more  through  that  experience  than  all  he  had  learned  in  college. 


CAMPBELL'S    ACTUAL    ACCOUNTING  65 

73.  Having  found  your  trial  balance,  record  it  in  your  journal  next  following  the  copied 
records  of  Bills  Receivable  and  Bills  Payable,  and  you  have  completed  what  is  termed  The  Daily 
Closing,  Detach  from  Prepared  Blanks,  Form  36,  fill  it  out  as  you  filled  out  your  former  report 
per  instructions  in  48  (d)  and  copy  it  carefully  into  the  form  following. 

Form  36  REPORT 

Cash  balance  in  Ledger, $ In    bank    per    check    book, $ 

Notes  received.  Number, $ Invoices   bought,    Number, $ 

Orders     filled.     Number, $. . . ! Receipts     taken,     Number, $ 

Outgoing  Papers.  , 

Checks  paid  out,  Number, $ 

Bills   rendered,   Number, $ Stamp  of 

Notes     given.     Number, $ Approval 


When  this  is  done  submit  your  report  with  your  books,  to  your  teacher  for  approval  while 
you  write  out  carefully  the  answers  to  the  following  questions : 

74.  Questions  to  Test  Your  Knowledge. — Copy  the  following  questions  and  write  answers 
as  instructed  for  the  questions  in  26.    Be  careful  of  your  penmanship  and  English. 

1.  What  is  the  best  way  to  express  the  absence  of  cents  in  writing  round  numbers  and 
why?    See  32  Note  i. 

2.  In  posting,  is  it  safe  to  leave  the  date  or  reference  column  blank  when  the  figures,  if 
entered,  would  be  the  same  as  in  the  preceding  item?    33  Note.   Why? 

3.  In  what  accounts  is  it  of  advantage  to  make  a  record  in  the  wide  (explanation) 
column  of  the  ledger  when  posting,  and  what  is  the  nature  of  this  record?  See  33  (a)  and  34,  also 
36  (a)  Footnote. 

4.  What  sort  of  pencil  should  be  used  in  adding  ledger  accounts  and  where  are  the  pencil 
footings  to  be  written?  What  is  the  best  method  of  finding  and  recording  the  difference  between 
the  footings  of  an  account?     What  other  method  is  a  common,  allowable  practice  ?44. 

5.  What  proves  the  Cash  account?    45  (a). 

6.  When  a  check  book  has  more  than  one  check  to  the  page,  is  it  necessary  to  subtract 
and  show  the  balance  every  time  a  check  is  drawn?  When  is  it  desirable  to  do  so?  What  short 
method  in  arithmetic  may  be  advantageously  practiced  in  the  subtractions  of  the  check  book? 
To  what  other  computations  in  bookkeeping  may  it  be  applied  to  advantage? 

7.  What  is  a  draft?  What  is  it  to  accept  a  draft?  What  is  a  bill  of  exchange?  When  you 
draw  a  draft  in  your  own  favor  on  one  who  owes  you  and  he  accepts  it,  what  account  do  you 
debit?  What  credit?  If  it  be  a  sight  draft  and  the  drawee  pays  it  in  cash,  what  difference 
will  it  make  in  the  entry?  51  and  53.  If  it  is  not  certain  that  your  draft  will  be  honored  what 
is  the  best  method  of  handling  it?     53  Footnote  i. 

8.  If  a  creditor  draws  on  you  at  sight  and  you  pay  the  draft,  what  account  should  be 
debited?  Credited?  56  (a).  If  it  be  a  time  draft  and  you  accept  it  what  account  should  be 
debited?     Credited?     57  (a). 

9.  What  account  should  be  debited  when  you  pay  a  draft  that  you  have  previously  accepted 
as  in  57  (b)  and  (c)  ?  What  account,  when  you  pay  a  draft  that  you  have  not  accepted  as  in  56 
(b)? 

10.  To  what  account  or  accounts  do  you  charge  money  paid  for  freight  and  drayage  (or 
cartage)  and  why? 

11.  When  you  collect  a  note  with  interest  what  is  the  entry? 

12.  If  a  charge  be  made  for  collecting,  what  should  be  the  entry?     (54,  foot  note). 

13.  If  you  pay  a  note  with  interest  what  should  the  entry  be?  Why  not  charge  it  to  the 
person  to  whom  it  is  paid?    20  (a)  ? 


66 


CAMPBELL'S    ACTUAL    ACCOUNTING 


14.  Why  are  bills  receivable  debited  when  received  and  credited  when  paid  and  bills  payable 
credited  when  they  originate  and  debited  when  they  are  paid?    23  (a)  (b)  (c).   69  (a),  note. 

15.  What  do  you  understand  by  accounts  receivable?  What  by  accounts  payable?  28  Foot- 
note I. 

Having  completed  your  answers  to  these  questions,  submit  them  to  your  teacher  and  if  your 
books  and  report  have  been  approved,  your  teacher  will  hand  you  your  books  so  that  you  may 
proceed  to  make  out  your  balance  sheet  and  close  your  ledger  while  he  examines  your  answers. 

75.  Having  proved  your  Cash  and  Bills  Receivable  and  Payable,  and  taken  your  trial  bal- 
ance, the  next  step  is  to  make  out  a  balance  sheet,  and  preparatory  to  this  it  is  necessary  to  take 
inventories  of  the  values  represented  by  some  of  your  accounts.  In  Merchandise,  this  is  called 
taking  stock,  and  has  already  been  done  under  Mr.  Burke's  direction  and  supervision  to  the  extent 
of  making  a  list  of  the  goods  on  hand  with  their  cost  prices.  It  is  for  you  as  bookkeeper  to 
make  the  extensions  and  footings.  Detach  Blank  Form  37  and  compute  and  enter  the  extensions 
and  footings  so  as  to  show  the  goods  on  hand  both  by  departments  and  in  the  total.  The  plan  of 
computation  is  illustrated  by  the  dots  and  dashes  in  the  form  below. 

INVBrrTORY   OP   IISRCKAITDISB. 


t                                                                                                                                                 - 

Extension  Colunns   _^®^, 

Total 

i  Totals 

Udae. 

Department  B: 

Pillabury's  Flour    225  brie.    5.00 

.  •  . . 

— 

16   •»       5.75 

. . 

— 

18  6   •»       5.50 

• .  •  • 

— . 

•  • . . 

_» 

Total  Department  B  -----  - 

Department  C: 

Granulated  Sugar     465  lbs.     4,50 

•  • 

-- 

^  ^ 

__ 

Total  Department  C  -----  - 

Department  D,  Teaj 

Eng.  Break.  Tea      240  Ibe.  33  l/3^ 

•  • 

— 

Uncolored  Jap.  Tea   180   "    33  l/3j^ 

•  • 

-- 

... 

._ 

Inventory  of  Tea»  Dep»t  d  -  -  -  - 

Ueats: 

Star  Sliced  Baoon     50  doz,     2.45 

... 

— 

V3  Corned  Beef       200   "       1.70 

. 

— 

VB  Roast  Beef         50   "       1.70 

— 

VB  Corned  Beef  Hash  100   ••       1.65 

. 

— 

VB  Chicken  Loaf       10   '»       1.80 

-- 

VB  Roast  Liutton       20   •»       1.80 

— 

VB  BnlB.  Pigs  Feet    25   ••       1.65 

— 

Columbia  Bologna     20   '•      2.00 

— 

Star  Hams            425  lbs.  12  l/2^ 

, 

.— 

... 

^^ 

. .  •  • 

Inventory  of  Meats,  Dep»t  d  -  -  - 

Total  Department  d  -----  - 

Department  E: 

Apples, Roman  Beauty  100  brls.    2.40 

.  •  • 

-- 

"     jennetings     70   ••       3.00 

... 

— 

... 

.. 

Total  Department  e  -----  - 

Department  P: 

Glassware,  Tumfilers    2  gross    8.55 

•  • 

— 

Bellshaped  Tumblers2    "      9,30 

•  • 

— 

Wines              1    "     13.50 

. . 

— 

Saucer  Champ.       4    ••     20.25 

.  • 

— 

Hdld.  Lemonades   1  2/3  ••     32.40 

.  • 

— » 

... 

^^^ 

•  •  •  • 

— 

Total  Department  f  -----  - 

Total  value  of  Merchandise 

76.     Analytical  Proof  of  Merchandise.     Having  taken  your  inventory,  preparatory  to  closing 
the  Merchandise  account,  it  is  very  necessary  to  know  that  it  is  correct  as  on  its  accuracy  will 


CAMPBELL'S    ACTUAL    ACCOUNTING 


67 


depend  the  loss  or  gain  that  your  books  will  show  and  to  a  very  great  extent  the  truth  or  falsity 
of  the  statement  that  Mr.  Burke  relies  on  to  show  the  real  value  of  the  business  that  he  is  put- 
ting into  the  partnership.  There  are  many  ways  of  proving  work  of  this  kind,  the  principal  being 
the  methods  of  proving  addition  and  multiplication,  with  careful  revision  of  every  step  of  the 
work.  Mr.  Burke,  however,  has  very  carefully  classified  his  goods  according  to  the  per  cent,  of 
profit  that  they  will  bear  and  find  ready  sale,  and  this  classification  will  materially  aid  you  now 
in  proving  the  accuracy  of  your  work  in  taking  this  inventory.  Except  the  A.  R  Kay  stock  which 
was  sold  at  aviction  for  what  it  would  bring,  all  goods  have  been  classified  as  they  came  in  and 
listed  to  sell  at  a  definite  per  cent,  of  profit  as  follows : 


Class  A 

Class  B 

Class  C 

Class  D 

Class  E 

Class  F 

Floui 

Suf. 

Smoked 

nd 

Frails 

Glassware 

/^\               INVOICE  AND  DESCRIPTION  OF 
\  "■/                                          GOODS 

No  Fixed 
Per  Cent. 

Lilted  10  Sell  at 
Profit 

Listed  10  Sell  it 
10* 
Profit 

Canned  M 
and  Te 
20»  Pro 

r 

andOtherCoods 

in  Bulk 

lt>!<  Front 

Listed  to  Sell  at 
1  lit 

Front 

INVOICES 

A.    R.    Kay    Stock,    Misc 

1600 

1500 

Inv.    1-P,    Flour  

1125 

1125 

Inv.    2-A,    Hams   and   Can'd   Meats 

1880 

16 

1880  16 

Inv.    3-P,    Flour    

5376 

5375 

Inv.    4-K,    Sugar,    Tea,    Rice 

154 

S3 

391 

25 

99 

645  la 

Inv.    5-Q,    Glassware      

195 

195 

Inv.    6-K,    Apples        

744 

744 

Total    Cost    of   Merchandise 

1500 

6500 

164 

93 

227  1 

41 

843 

195 

11464    34 

SALES 

Auction    of   A.    R.    Kay    Stock         .      . 

1580 

1580 

Sales    1,    Hams,    Tea,    Glassware 

138 

12 

150 

Sales    2,    Flour,    Sugar,    Tea,    Rice 

2310 

58 

16 

162 

56 

2586  16 

Sales    3,    Flour,    Sugar,    Tea,    Rice 

577   50 

17 

97 

49 

50 

3  50 

648  47 

Sales   4,    Flour,    Tea,    Rice    .      .      . 

288  75 

42 

56 

386  76 

Sales    5,    Flour,    Apples      .... 

577   50 

140 

717  50 

Sales   e.    Flour,    Sugar,    Apples 

115  50 

71 

28 

28 

214   78 

Sales    7,    Flour,    Meats,    Apples 

603  75 

1085 

13 

175 

1863  88 

Total    Sales    of   Merchandise 

1580 

4473 

147 

41 

1476 

63 

458  50 

12 

8147   64 

Deduct    Profits   by   Percentage 

80 

213 

13 

40 

246 

1  1 

65   50 

1    20 

619  21 

Leaves  Cost    of    Goods    Sold 

1500 

4260 

134 

01 

1230 

52 

393 

10  80 

7628  33 

Deducting  cost    of  goods   sold  from 

the    total    cost    of    Mxise.    above. 

gives    Inventories      .'.... 

2240 

20 

92' 

1040 

89' 

450 

184   20 

3936  01 

(b)  Correction  of  Errors.  If  your  proof  of  Merchandise  has  discovered  errors  in  any  of 
your  invoices  or  sales,  the  principle  that  will  govern  you  in  making  the  correction  will  be.  Cor- 
rect every  mistake  that  would  be  corrected  in  business.  In  the  early  history  of  business  it  was 
the  object  of  the  seller  to  cheat  the  buyer  and  of  the  buyer  to  beat  the  seller,  and  it  is  still  true 
in  the  Orient,  but  in  countries  pervaded  by  the  civilization  of  Christianity,  business  has  practically 
adopted  the  motto.  Honesty  is  the  best  policy;  and  business  firms  everywhere  stand  ready  at  all 
times  to  correct,  even  without  being  asked,  any  mistake  that  is  apparent.  If,  therefore,  the  error  is 
in  your  favor  you  will  always  make  offer  to  correct  it  unless  it  is  so  insignificant  as  to  be  ridicu- 
lous. If  against  you,  you  will  feel  at  liberty  to  ignore  it,  unless  it  be  of  some  financial  import- 
ance. In  a  retail  business,  dealers  will  correct  errors  in  favor  of  their  customers  as  a  good  policy, 
if  for  no  other  reason,  and  for  the  same  reason  would  probably  pass  over  all  errors  against  them- 
selves, for  the  sake  of  holding  custom.  Among  wholesale  merchants  and  their  customers,  however^ 
the  principle  works  freely  both  ways. 

The  entry  for  a  correction  of  an  error  in  a  merchandise  transaction  will  probably  be  first,  a 
debit  or  a  credit  to  the  person  or  firm  interested  according  as  the  mistake  is  against  them  or  irt 


1.  This  profit  is  not  computed  by  percentage.     Being  in  the  Miscellaneous  Class  the  computation  is  made 
by  taking  the  actual  difference  between  cost  and  sales. 

2.  The  student  who  has  carefully  worked  out  his  inventory  as  instructed  in  75  will  find  that  his  results: 
if  correct  differ  from  the  department  results  above  by  one  cent  each  in  Classes  C  and  F.  These  differences  are 
due  to  the  taking  of  the  half-cent  in  invoices  and  inventory,  or  in  the  computation  of  the  profits  by  percentage, 
and  cannot  be  certainly  controlled.  As  one  of  these  differences  is  plus  and  the  other  minus,  the  total  in- 
ventory proves  exactly  and  the  total  gain  is  as  shown  in  the  table.  In  making  a  tabulated  showing  like  the 
above  for  business  purposes,  it  would  be  perfectly  allowable  and  correct  to  arbitrarily  adjust  the  one  cent  of  ap- 
parent error  in  each  case  on  the  gains  of  the  respective  classes  or  departments,  making  the  gain  in  Class  C, 
$13.41,  and  that  in  Class  F,  $246.10,  which  as  checked  up  by  the  inventory  is  the  exact  gain  for  each  of  these 
departments,  and  makes  no  change  in  the  final  or  total  result. 


68 


CAMPBELL'S    ACTUAL    ACCOUNTING 


their  favor,  the  opposite  entry  going  to  Merchandise  or  possibly  to  an  account  known  as  Mer- 
chandise Errors.     For  further  instruction,  consult  your  teacher. 

(c)  When  entries  have  been  made  to  correct  all  errors,  it  will  be  necessary  to  revise  the 
trial  balance  or  to  make  a  new  one  before  proceeding  to  make  out  the  balance  sheet  as  in- 
structed in  78.  It  will  therefore  be  apparent  to  the  student  that,  when  Merchandise  is  to  be 
proven  preparatory  to  a  general  closing  of  the  books,  it  will  be  best  to  prove  it  along  with  Cash 
and  your  Bills  Receivable  and  Bills  Payable,  before  taking  your  trial  balance. 

77.  Other  Inventories.  Many  other  accounts  besides  Merchandise  may  have  an  inventory 
to  take  into  account  at  the  closing  of  the  books,  but  the  only  additional  inventories  that  we  will 
consider  at  this  time  are  to  be  found  in  Expense  and  Salaries. 

Closing  books  as  we  are  doing  on  the  21st  of  the  month  we  have 

(a)  A  week's  rent  paid  for  that  we  have  not  yet  used,  and  we  owe 

(b)  Three  weeks'  water  bill  that  has  not  yet  been  paid  as  these  items  are  usually  settled 
on  the  first  of  the  month. 

Observe  that  the  item  of  rent  (a),  is  in  our  favor,  is  a  value  that  we  will  get  out  of  this  ac- 
count in  the  transfer  to  the  new  partnership,  while  the  item  of  water  rent  is  against  us,  is  an 
item  that  we  will  owe  to  the  new  partnership  since  it  will  come  in  for  them  to  pay  on  the  first 
of  March.  Compute  the  Expense  Inventory  as  indicated  below  and  copy  it  on  the  detached  form 
37  immediately  following  the  Merchandise  Inventory. 

Form  37  INVEUTORY  OP  EXP2NSE  ACCOtJHT. 


Resource  Inventory: 

1 

-" 

7  days*  rent  unused, 1/4  month,   $150 

37 

50 

Deduct  Inventory  of  Liabilities, 

21  daye*  water  bill  unpaid, 3/4  month 

«2 

1 

50 

36 

Leaves  Net  Resource  Inventory  of  Expense 

00 

IHVEUTORY  OP  SALARIES  ACCOaNT. 


Liabilities  Inventory! 

21  days*  Bookkeeper *e  salary  Qnpai(l,3/4  month   550 


37 


50 


The  student  will  carefully  observe  that  the  $36  of  Expense  Inventory  is  a  value  that  can  be 
turned  into  money  and  that  as  we  proceed  we  will  use  it  in  the  Expense  account  exactly  as  the 
Merchandise  Inventory  will  be  used  in  Merchandise ;  but  that  Salaries  Inventory  is  an  inventory 
of  debt  or  something  that  will  take  money  out  of  the  business  and  decrease  instead  of  increase 
the  value  of  Mr.  Burke's  business  at  this  time.  Copy  this  inventory  also  on  the  detached  Form  37 
immediately  following  the  inventory  of  Expense. 

(c)  Observe  that  a  Resource  Inventory  is  a  list  at  cost  prices  of  goods  or  other  values, 
that  have  been  charged  against  their  respective  accounts  and  not  yet  used  up  or  credited  out.  They 
are  unused  capital,  just  as  much  as  the  money  in  the  cash  drawer  though  they  are  in  another 
form  than  money.  Observe  also  that  a  Liability  Inventory  is  a  list  of  debts  owed  for  services 
rendered  (sometimes  for  values  received)  that  have  already  been  used  in  the  business,  but  have 
not  been  charged  to  their  respective  accounts. 
TO  MAKE  OUT  A  BALANCE  SHEET. 

78.  The  Balance  of  Differences.  Copy  your  trial  balance  as  it  appears  in  the  third  pair  of 
columns  in  the  form  in  72   (e),  on  scratch  paper^  and  reduce  it  to  a  balance  of  differences^  by 

1.  Although  it  has  seemed  necessary  in  this  and  other  instances  to  require  the  student  in  the  beginning 
of  his  work  to  do  it,  first,  on  scratch  paper,  the  "scratch  paper  habit"  is  not  to  be  encouraged.  It  breeds  in- 
accuracy and  self-distrust.  The  accountant  that  can  add,  subtract,  multiply,  or  divide  accurately  has  little 
need  for  scratch  paper,  and  unless  you  intend  to  make  that  kind  of  an  accountant,  you  would  better  quit  at 
once.    A  gentleman  who  held  high  position  on  the  Pacific  Coast,  both  as  an  accountant  and  as  a  teacher  of 


CAMPBELL'S    ACTUAL    ACCOUNTING 


69 


subtracting  the  smaller  side  of  each  account  from  the  larger  and  writing  the  remainder  on  the 
larger  side.  Accounts  that  are  the  same  on  both  sides  will  not  appear  in  this  balance.  Prove 
the  accuracy  of  your  subtractions  by  adding  the  resulting  columns.  The  two  footings  will  be  equal 
though  they  will  not  be  the  same  as  in  72  (e).  Now  copy  this  subtracted  balance,  except  the  foot- 
ings, into  the  first  two  columns  on  the  first  page  of  your  trial  balance  book  and  re-add  it  to 
obtain  the  footings^. 

(a)  When  the  re-addition  of  your  columns  proves  them  to  be  correct,  write  at  the  head  of 
the  second  pair  of  columns,  Losses  and  Gains,  and  at  the  head  of  the  third  pair  of  columns,  Re- 
sources and  Liabilities,  making  your  trial  balance  page  appear  as  in  the  form  below. 


^^^^^  y^^^-d.^^^^ 


^^^^^^^L-^t^-^-^ZZ^i-^  J- /    /^/ 


TRIAL  BALANCE 


LOSSES         OAIN5 


R650URCeS      LIABILITIES 


^fy?^' 


^^aa 


^/ 


7r 


^/^:!/^ 


^f77^/ 


/J- 


(b)  Studying  the  above  form  and  remembering  that  in  making  entries  you  have  always 
credited  the  source  from  which  your  values  came  and  debited  the  accounts  that  represent  the 
places  into  which  you  put  these  values  (see  12),  it  should  be  apparent  that  your  debit  column 
now  contains  all  that  is  due  to  the  business  from  any  and  all  of  its  accounts,  and  that  if  you  can 
get  back  the  sum  charged  to  an  account  in  cash  or  in  something  that  can  be  turned  into  cash, 
it  is  a  resource,  if  not,  it  is  a  loss.  For  example,  if  you  can  go  to  the  cash  drawer  or  the  bank 
and  find  the  $924.39  charged  against  Cash,  as  above,  it  is  a  resource,  but  if  the  drawer  has  been 
robbed,  or  the  bank  has  failed,  what  you  cannot  get  is  a  loss.    Or  looking  at  the  account  of  McCon- 


accounting,  once  told  his  students  that  he  very  nearly  lost  his  first  business  position  because  he  had  been 
taught  in  a  business  college  to  work  everything  out  first  on  scratch  paper  and  then  copy  it  into  his  books. 
Business  men  want  original  work  in  their  books,  not  a  copy  of  the  original. 

2.  The  subtraction  of  the  smaller  side  of  the  account  from  the  larger  is  made  uniform  in  all  the  accounts 
of  this  trial  balance  that  it  may  be  easier  to  instruct  the  student  in  distributing  the  items  to  the  proper  col- 
umns. Later,  the  student  will  be  required  to  let  every  trial  balance  (especially  one  preceding  a  balance  sheet) 
show  the  face  of  the  ledger,  or  both  the  debit  and  credit  footings,  of  Merchandise  and  all  similar  accounts  in 
which  it  is  desirable  to  show  both  cost  and  sales. 

3.  The  importance  of  the  instruction  to  re-add  the  copied  trial  balance  to  obtain  the  footings  instead  of 
copying  them,  should  be  at  once  apparent  to  the  thoughtful  student.  If  in  copying  the  figures  of  the  columns, 
there  be  a  number  omitted  or  figures  reversed,  or  copied  incorrectly  owing  to  Imperfect  formation,  and  the 
footing  be  copied,  the  error  in  copying  the  numbers  will  not  be  discovered,  until  some  question  of  the  accuracy 
of  this  balance  is  raised.  It  will  then  be  found  wanting,  and  although  you  may  know  that  it  was  correct  when 
you  copied  it,  you  will  need  to  find  It  again,  because  you  did  not  copy  it  correctly.  All  this  might  have  been 
avoided  at  the  time  by  re-adding  to  obtain  the  footings.  Never  Copy  Results. 


70  CAMPBELL'S   ACTUAL   ACCOUNTING 

nell  &  Co.,  if  you  can  collect  the  amount  charged  against  him,  it  is  a  resource,  but  if  he  has 
failed,  whatever  you  cannot  collect  is  a  loss. 

If  you  can  go  to  your  landlord  and  get  back  from  him  the  money  paid  for  rent  and  charged 
to  Expense  it  would  be  a  resource ;  but  as  you  cannot  expect  this  return  of  your  money  after  you 
have  used  the  building,  all  of  that  debit  which  represents  rent  already  used  is  a  loss. 

In  like  manner,  it  should  be  apparent  that  the  credit  column  contains  all  the  business  owes 
to  any  and  all  of  its  accounts,  since  we  credited  the  source  from  which  our  values  came,  and  that 
when  these  accounts  represent  persons  outside  of  the  business  who  will  have  to  be  repaid,  the 
amounts  are  liabilities,  while  the  credit  balances  of  accounts  representing  departments  of  the  busi- 
ness are  gains,  since  we  owe  these  to  accounts  representing  our  own  efforts  and  will  not  need 
to  repay  them  to  anyone  else.  We  except  from  this  statement,  the  $5,000.00,  that  stands  to 
the  credit  of  C.  W.  Burke,  because  we  know  it  to  be  his  investment.  In  a  way,  it  is  what  the 
business  owes  him,  but  it  is  subject  to  the  gains  and  losses  for  its  final  amount.  The  work  of 
making  a  balance  sheet  is  the  assigning  of  each  of  the  amounts  in  the  trial  balance  columns 
to  one  of  the  other  columns  according  as  you  find  it  to  represent  a  loss,  a  gain,  a  resource  or  a 
liability.    See  column  headings  in  form  (a). 

(c)  Inventories.  When  it  comes  to  investigating  such  an  account  as  Merchandise  to  see 
whether  we  can  get  back  from  it  the  $3,316.80  that  you  find  charged  against  it  in  the  trial  balance 
in  (a)  above,  it  becomes  necessary  to  take  an  inventory  of  the  merchandise  in  stock,  that  is,  to 
count  up  its  value  at  cost  prices.  This  has  already  been  taken  and  proved  as  instructed  in  75 
and  76.  Take  up  your  Inventory  Sheet,  the  detached  Form  37  and  copy  the  amount  of  each 
inventory  on  your  balance  sheet  where  it  appears  in  the  balance  sheet  form  in  (a)  preceding. 

79.  Extending  the  Items  of  the  Balance  Sheet.  Take  the  balance  sheet  you  have  already 
prepared  as  instructed  in  78  (a),  and  proceed  to  enter  the  amounts  in  the  columns  to  which  each 
belongs  as  per  the  following  instructions  which  you  will  follow  closely: 

(a)  Passing  over  the  Proprietor's  credit  (see  comment  on  this  item  in  78,  b),  the  first 
debit  shows  you  that  Cash  (representing  either  your  safe  or  your  bank  account,  or  both)  is 
charged  with  having  received  $924.39  belonging  to  your  business,  above  what  the  credits  of  that 
account  in  the  ledger  showed  that  it  has  returned  to  you,  or  given  up  on  your  order.  Since  you 
have  proved  in  66,  that  exactly  that  amount  of  cash  is  on  hand,  viz :  $106.00  in  your  cash  drawer 
and  $818.39  in  your  bank  subject  to  your  order  at  any  time,  you  count  this  sum  a  resource  and 
enter  the  amount  in  that  column,  on  the  same  horizontal  line  with  the  title  Cash, 

(b)  Taking  the  next  item,  you  notice  that  your  ledger,  as  shown  by  the  trial  balance,  calls 
for  $3,316.80  in  merchandise  at  cost  prices.  Your  merchandise  cost  you  a  total  of  $11,464.34  as 
shown  by  the  trial  balance  presented  in  section  72  (e)  and  you  have  sold  goods  to  the  amount 
of  $8,147.54,  leaving  the  balance  of  $3,316.80  standing  against  your  present  stock.  But  the  inven- 
tory, taken  to  see  if  Merchandise  is  good  for  this  amount,  shows  that  you  have  goods  on  hand 
to  the  value  of  $3,936.01.  This  then  is  your  resource  from  this  account;  extend  it  into  the  re- 
source column  in  the  same  horizontal  line  with  the  title  Merchandise.  Since,  however,  it  is  more 
than  the  amount  you  have  charged  against  Merchandise  account  (see  trial  balance  is  78,  a)  it  is 
clear  that  the  difference  is  a  gain.  Extend  this  difference,  $619.21  into  the  Gains  column,  on  the 
same  horizontal  line  with  the  title  Merchandise. 

(c)  The  next  item,  Mdse.  Discount,  $31.57  being  in  the  credit  column  indicates  that  that 
amount  of  money  came  into  your  business  from  your  discounting  bills  by  paying  them  before 
they  became  due  (see  21,  a) and  as  this  comes  out  of  your  own  industry  and  foresight  and  not 
from  some  source  outside  of  your  business  it  is  a  gain  to  you.  Extend  the  amount  into  the 
Gains  column  on  the  same  horizontal  line  with  the  title  Merchandise  Discount. 

(d)  The  next  item  is  Expense  $302.00,  with  an  inventory  memorandum  of  $36.00.  Enter 
the  $36.00  in  the  resource  column.  Turn  to  your  Inventory  of  Expense  on  your  inventory  sheet 
and  observe  that  the  unused  rent  amounted  to  $37.50.     This  is  all  you  could  possibly  expect  to 


CAMPBELL'S   ACTUAL   ACCOUNTING  yi 

get  back  of  the  money  you  have  paid  for  rent  if  you  should  sell  out  the  entire  business  to  some 
one  who  expected  to  continue  it  in  the  same  building;  or  it  is  exactly  what  the  unused  portion  of 
the  rent  is  worth  to  you  for  future  use.  The  rest  of  the  money  that  you  have  put  into  the  things 
represented  by  the  Expense  account  is  loss,  and  we  find  in  the  Inventory  of  Expense  an  addi- 
tional item  of  loss  $1.50  for  water  that  is  due  but  not  charged  up.  Deducting  this  from  the 
value  of  $37.50  that  we  found  in  the  rent,  we  have  as  the  real  value  represented  by  this  account, 
$36.00.  The  rest  of  the  money  that  you  have  put  into  Expense,  or  the  difference  between  the 
debit  of  $302.00  and  this  inventory  credit,  is  a  loss,  $266.00.  Enter  it  in  the  Losses  column  on  the 
same  horizontal  line  with  the  title  Expense. 

(e)  The  item  of  $42.00  that  was  paid  for  freight  and  cartage  as  shown  by  the  next  account  is 
entirely  loss.  The  service  paid  for  has  been  fully  rendered.  There  is  no  part  of  it  due  to  you 
from  the  drayman.  You  can  neither  collect  from  him  in  cash,  nor  claim  anything  in  the  form 
of  future  services.    Extend  it  into  the  Losses  column^. 

(f)  The  next  item  in  the  trial  balance  columns  is.  Salaries  $50,  with  a  liability  inventory 
of  $37.50,  earned  and  unpaid,  hence,  due.  This  being  a  debt  due  and  not  yet  paid,  it  is  a  liability, 
extend  the  amount,  $37.50  into  the  Liabilities  column  on  the  same  line  with  the  title.  Salaries, 
then  add  it  to  the  $50  that  is  already  in  the  debit  of  Salaries  and  place  the  total  sum,  $87.50  in 
the  Losses  column.  In  this  respect  this  amount  is  treated  exactly  as  it  would  be  if  the  $37.50 
were  paid,  except  that  only  $50.00  appears  on  the  debit  of  the  trial  balance.  Observe  that  in 
placing  $37.50  in  Liabilities,  which  is  a  credit  column,  you  destroyed  the  balance  until  the  same 
sum  added  to  the  $50.00  was  placed  in  Losses  which  is  a  debit  column.  Observe  also  that  in 
entering  the  Inventory  of  Merchandise  in  the  Resources  column,  you  preserved  the  balance  by 
placing  the  same  amount  to  the  credit  of  the  account  when  you  placed  the  difference  between 
that  and  the  Merchandise  debit  in  the  Gains  column ;  and  that  the  same  thing  was  done  in 
Expense,  the  $36.00  of  Inventory  being  offset  by  subtracting  it  from  the  Expense  debit  and 
carrying  that  much  less  into  the  Losses  column. 

(g)  The  next  item,  Interest  $7.74,  is  very  similar  to  the  item  of  Merchandise  Discount.  It 
comes  into  your  business  from  your  money  loaned  out  and  not  from  any  outside  party  to  whom 
it  must  be  repaid.  It  is  therefore,  a  gain.  Extend  it  into  the  Gains  column,  x)n  the  same  line  with 
the  title  Interest  and  Discount. 

(h)  The  next  item.  Bills  Receivable,  $648.47,  indicates  that  you  have  put  that  amount  into 
notes  of  other  persons  which  you  hold  against  them.  If  some  of  these  persons  should  fail  there 
would  be  a  loss  on  this  item,  but  since  the  note  represented  by  this  sum  is  considered  perfectly 
good  and  possible  of  being  turned  into  money,  we  count  this  a  resource.  Extend  it  into  the  re- 
source column  on  the  same  line  with  the  title  of  the  account. 

(i)  The  next  item.  Bills  Payable,  $1,293.12,  indicates  that  you  have  that  amount  of  money 
or  goods  in  your  business  that  came  from  your  giving  notes  to  outside  parties  to  whom  it  must 
be  repaid.  See  definition  of  Bills  Payable  20, a.  It  is  therefore,  a  liability.  Extend  it  into  the 
Liabilities  column,  on  the  same  line  with  the  title  of  the  account. 

(j)  The  next  item,  a  charge  against  McConnell  &  Co.,  of  $717.50,  is  counted  as  good  as  cash 
when  due  and  hence  is  extended  into  the  resources  column ;  so  also  the  debits  to  Anderson  & 
Anderson  and  F.  H.  Burns,  respectively. 

(k)  The  last  item  in  the  trial  balance,  a  credit  to  the  Keystone  Company,  indicates  that  you 
have  that  value  in  some  form  in  your  business,  received  from  the  Keystone  Company  and  not  as 
yet  paid  for.  See  22,  59  and  61.  Since  you  owe  that  sum  to  the  Keystone  Company,  it  is  a  liabil- 
ity and  is  to  be  extended  into  that  column. 


1.  Freight  and  Cartage  charges  on  goods  received  constitute  an  expense  which  is  often  charged  directly 
to  the  Merchandise  account  when  it  is  paid,  or  after  being  collected  into  a  separate  account  as  in  this  practice, 
is  closed  into  Merchandise  instead  of  directly  into  Loss  and  Gain.  This,  however,  is  a  feature  of  cost  ac- 
counting that  will  be  considered  in  a  future  practice.  In  this  practice  we  will  close  this  account  directly  into 
Loss  and  Gain. 


72 


CAMPBELL'S   ACTUAL   ACCOUNTING 


(1)  If  you  have  carefully  studied  the  foregoing  while  extending  the  amounts  into  the 
respective  columns,  you  have  observed  that  the  debit  column  of  a  subtracted  trial  balance 
(except  as  influenced  by  inventories)  contains  all  the  losses  and  resources  and  these  only,  while 
the  credit  column  contains  the  liabilities  (debts)  of  the  firm,  and  the  gains  excepting  the  pro- 
prietor's account  which  we  have  not  as  yet  considered. 

(m)  Before  proceeding  farther  with  the  balance  sheet,  it  is  desirable  to  prove  the  accuracy 
of  the  work  done^.  Add  each  of  the  four  columns,  Losses,  Gains,  Resources,  and  Liabilities,  and 
set  the  result  in  pencil  below  the  red  line  at  the  foot  of  the  column.  Then  add  together  the  losses 
and  resources  for  one  sum  and  the  gains,  liabilities  and  the  proprietor's  credit  for  the  other  and 
if  the  two  sums  are  equal,  you  may  proceed  to  enter  these  footings  in  black  ink,  as  shown  below. 

80. 


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1.  A  proof  taken  at  this  time  as  required  will  prevent  any  possibility  of  the  Resources  and  Liabilities 
columns  failing  to  balance  (unless  the  error  be  made  in  later  work)  and  will  save  erasures  or  the  necessity  of 
making  a  new  balance  sheet. 

*Many  texts  teach  the  use  of  red  ink  for  these  figures  obtained  by  inventory.  This  is  unnecessary  when 
the  amount  of  the  inventory  is  stated  following  the  title  of  the  account,  as  above,  and  the  modern  accountant 
avoids  red  ink  all  that  he  can,  unless  the  sheet  be  prepared  on  a  two-color  typewriter. 

t  After  the  columns  have  been  ruled  as  above,  they  are  for  the  purpose  of  adding  the  gain  to  the  invest- 
ment, merely  item  and  total  columns  to  be  used  to  the  best  advantage  regardless  of  any  debit  or  credit  relation. 


CAMPBELL'S   ACTUAL   ACCOUNTING  73 

81.  To  Close  the  Balance  Sheet. 

First,  enter  the  difference  between  the  losses  and  gains  in  the  Loss  column  in  red  ink  with 
the  explanation  C.  IV .  Burke's  net  gain,  and  rule  and  foot  the  columns  of  losses  and  gains  as  in  80. 

Second,  bring  down  as  shown  in  80  from  the  top  line  of  your  trial  balance  in  78  (a),  the 
$5,000.00  that  was  not  extended  but  was  passed  over  as  per  79  (a),  add  to  it  the  net  gain  and 
extend  it  into  the  liabilities  column  in  black  ink^  as  in  the  form  below.  This  last  item  shows  the 
amount  that  the  business  owes  to  the  proprietor,  or  the  amount  that  he  now  has  in  the  business. 
Complete  the  rulings  as  shown  in  the  form  80  and  your  balance  sheet  is  complete.  Now  turn 
back  to  5  and  compare  the  statements  of  that  definition  of  double  entry  with  the  results  presented 
by  this  balance  sheet.  Observe  that  this  balance  sheet  shows  the  amount  of  net  gain  of  the 
business  as  expressed  by  the  red  ink  figures  at  the  foot  of  the  Losses  column;  that  it  shows  the 
total  gains  as  shown  by  the  footing  of  the  Gains  column ;  that  it  shows  the  total  losses  as  shown  by 
the  footing  of  the  Losses  column ;  that  it  shows  the  accounts  in  which  the  gains  were  made  as 
shown  by  the  titles  opposite  the  figures  in  the  Gains  column;  and  the  accounts  in  which  the 
losses  were  sustained  as  shown  by  the  titles  opposite  the  figures  in  the  Losses  columun.  It  also 
shows  all  your  resources,  the  amount  of  your  cash  on  hand,  the  value,  of  your  merchandise  in 
stock,  the  amount  of  your  rent  that  is  not  yet  used  and  the  amounts  that  are  due  you  from  other 
people ;  and,  in  the  last,  or  Liabilities  column,  above  the  addition  line,  the  debts  owed  by  the 
business  and  to  whom  or  in  what  form  each  is  owed,  and  below  the  line  the  total  of  these  liabili- 
ties, then  on  the  line  marked  C.  W.  Burke's  Present  Worth  (the  last  item  on  the  page  except  the 
footing)  it  shows  the  net  amount  that  the  business  is  worth  to  the  proprietor. 

82.  To  Close  the  Ledger.  Place  before  you  the  balance  sheet  you  have  just  completed,  to 
be  used  as  a  guide  in  closing,  then  carefully  follow  the  following  instructions. 

(a)  Observe  that  the  first  item  in  the  balance  sheet  that  is  extended  into  the  column 
marked.  Losses  and  Gains,  is  Merchandise.  The  Merchandise  account  in  your  ledger  is  there- 
fore the  first  account  to  be  closed.  Observe  further,  that  besides  the  amount  of  $619.21  in  the 
Gains  column.  Merchandise  has  an  inventory  of  $3,936.01  which  is  extended  into  the  Resources 
column.  Now  turn  to  Merchandise  in  your  ledger  and  write  the  inventory  figures,  in  red  ink,  in 
the  right  hand  column  on  the  first  blue  line  below  the  last  posted  figures,  and  insert  the  date^ 
(taken  from  the  top  of  the  balance  sheet)  and  the  explanatory  word.  Inventory,  exactly  as  it 
appears  in  Model  Ledger  No.  2,  Sec.  85.  Add  this  inventory  to  the  penciled  footing  of  the  right 
hand  column  of  Merchandise  and  take  the  difference  between  the  sum  and  the  penciled  footing 
of  the  left  hand  column,  entering  the  result  in  red  ink  in  the  left  hand  column  on  the  first  blue 
line  below  the  last  posted  figures.  You  should  be  able  to  enter  this  result  just  as  you  subtract  it, 
noticing  that  it  agrees  with  the  figures  in  the  Gains  column  of  the  balance  sheet,  $619.21.  Next 
enter  the  page  of  the  Losses  and  Gains  account  in  the  reference  column,  the  explanatory  word, 
Gain  in  the  explanation  column,  and  the  date  in  the  date  column,  as  in  Model  Ledger  No.  2, 
and  before  you  lay  down  the  red-ink  pen,  rule  the  account  for  closing,  drawing  both  the  single 
and  double  lines  exactly  as  in  the  Model  Ledger  No.  2.  Now  take  up  your  black  pen  and  enter 
the  footings  of  the  two  columns  just  above  the  double  closing  lines  and  below  the  addition  line, 
obtaining  these  footings  by  adding  the  red-ink  figures  that  you  have  just  entered  in  the  respective 
columns  to  the  penciled  figures  just  above  them.  The  two  footings  must  be  equal  as  in  the 
Model  Ledger  No.  2.  Next,  bring  down  in  black  ink  on  the  opposite,  or  left  side,  of  the  account, 
on  the  first  blue  line  below  the  closing  lines,  the  inventory  that  now  appears  in  red  in  the  right 
hand  column  above.  Enter  also  the  date  and  the  explanatory  word  Inventory.  Lastly,  take 
the  item  of  gain,  $619.21  from  the  left  side  of  Merchandise  account  and  enter  it  in  the  Loss  and 

1.  While  it  is  perfectly  proper  in  the  Statement,  as  shown  in  86,  to  show  the  proprietor's  present  worth  in 
red  ink,  it  would  be  entirely  out  of  place  in  this  balance  sheet,  where  it  would  indicate  a  balance  entry  as  in 
the  Losses  and  Gains  column  instead  of  a  real  value,  the  net  credit  of  an  account,  belonging  on  the  side  on 
which  it  is  shown. 

2.  The  month  and  day  are  all  that  is  necessary  when  the  year  date  stands  at  the  head  of  the  column,  until 
the  year  changes,  as  would  be  the  case  when  closing  is  made  at  the  end  of  a  year  and  the  inventories  and 
other  balances  are  brought  down  under  date  of  Jan.  1.    When  this  is  the  case  the  year  date  should  be  repeated. 


74  CAMPBELL'S   ACTUAL  ACCOUNTING 

Gain  account  to  which  it  is  referred,  on  the  opposite,  or  right  side,  of  the  account,  in  black  ink, 
with  the  date,  the  explanatory  word.  Merchandise,  and  the  page  of  the  Merchandise  account  in 
the  reference  column.  This  finishes  the  closing  of  Merchandise.  Compare  it  with  the  Model 
Ledger,  No.  2,  and  if  it  does  not  agree  in  every  particular  go  back  over  these  instructions  carefully 
and  see  if  you  can  find  wherein  you  have  failed  to  follow  them.  Then  make  your  corrections 
before  proceeding. 

(b)  The  next  item  in  the  Losses  &  Gains  columns  of  your  balance  sheet  is  $31.57  from 
Merchandise  Discounts.  Observe  that  it  is  a  gain,  and  that  there  is  no  inventory.  Turn  to 
Merchandise  Discount  in  your  Ledger  and  enter  the  amount  on  the  first  blank  line  on  the  left 
(debit)  side  of  the  account,  with  the  date,  the  explanatory  word,  Gain,  and  the  page  of  the  Loss 
&  Gain  account  as  a  reference,  all  in  red  ink.  Rule  and  foot  the  account ;  then  transfer  the  gain  to 
the  credit  side  of  the  Loss  &  Gain  account  in  black  ink,  under  the  gain  of  Merchandise,  entering 
the  date  and  reference  number  and  the  explanation,  Mdse.  Disc'ts.  After  making  this  transfer, 
compare  with  the  Model  Ledger,  No,  2.  Is  there  anything  to  bring  down  in  the  Mdse.  Disc'ts 
account  after  ruling?    Why  or  why  not?    Compare  with  (a)  above. 

(c)  Turning  again  to  the  balance  sheet  as  your  guide,  you  will  observe  that  the  next  item 
that  is  extended  into  the  Losses  &  Gains  columns  is  Expense  and  that  this  account  has  an  in- 
ventory of  $36.00  and  a  loss  of  $266.00.  Enter  the  inventory  in  red  ink  in  the  credit  column  of 
the  Expense  account  on  the  first  blue  line  with  date,  explanation  and  reference  as  in  Merchandise, 
but  observe  that,  unlike  Merchandise,  there  are,  in  expense,  no  other  figures  on  the  credit  side 
of  the  account  and  that,  after  entering  the  inventory,  the  debit  is  still  the  larger.  Enter  the 
$266.00  of  loss  in  red  ink,  also  on  the  right  or  credit  side  on  the  first  line  below  the  inventory, 
filling  in  the  date,  the  word,  Loss,  as  an  explanation,  and  the  page  of  the  Loss  &  Gain  account 
in  the  reference  column.  Rule  and  foot  the  account;  then  bring  down  the  inventory  on  the 
opposite  or  left  side  of  the  account,  below  the  closing  lines,  in  black  ink,  as  you  did  in  closing 
Merchandise;  and,  lastly,  take  the  item  of  loss  to  the  opposite  side  (the  debit)  of  the  Loss  & 
Gain  account,  where  you  will  enter  it  on  the  upper  line  in  black  ink  with  the  date,  the  word. 
Expense,  as  the  explanation,  and  the  page  of  the  Expense  account  as  a  reference  number. 

(d)  Turning  again  to  your  balance  sheet,  you  will  observe  that  the  next  item  that  is  extended 
into  the  Losses  &  Gains  columns  is  from  the  Freight  account.  You  will  also  observe  that  there  is 
no  inventory  and  that  the  $42.00  is  a  loss.  Enter  this  loss  item  on  the  credit  side  of  Freight 
account,  on  the  first  blank  line,  exactly  as  the  preceding  loss  item  was  entered  in  the  Expense 
account.  Rule  the  account  with  the  double  lines  only  as  there  is  but  one  item  on  either  side. 
(See  Model  Ledger  No.  2)  and  transfer  the  item  of  loss  to  the  opposite  side  of  the  Loss  &  Gain 
account,  entering  it  in  black  ink  just  below  the  Expense  item  with  the  date,  the  explanation, 
Freight,  and  the  page  of  the  Freight  account  as  a  reference.  Observe  that  as  there  is  no  in- 
ventory   in    Freight    there    is    nothing   to   bring  downV 

(e)  The  next  item  extended  into  the  Losses  and  Gains  columns  is  a  loss,  $87.50,  from 
Salaries  account.  Observe  that  this  account  has  a  liabilities  inventory.  Enter  the  amount  of  the 
inventory,  $37.50,  in  red  ink  on  the  debit  side  of  the  Salaries  account  on  the  first  blue  line  be- 
neath the  debit  item  of  $50.00  with  date,  explanation,  and  reference,  as  in  the  other  entries  of 
inventories,  only  on  the  opposite  side.  Then  enter  the  $87.50  of  loss  on  the  credit  side,  in 
red  ink,  exactly  as  the  loss  of  Freight  account  was  entered,  and  rule  the  account.  Enter  the  foot- 
ings, bring  down  the  liability  inventory  on  the  credit  side  of  Salaries  account,  entering  the  date 
and  explanatory  word,  and  take  the  loss  to  the  Loss  &  Gain  account  entering  it  on  the  debit  side, 
on  the  first  line  beneath  the  item  of  Freight,  with  the  date,  the  explanatory  word,  "Salaries" 
and  the  page  of  the  Salaries  account  as  a  reference  number. 


1.  Red  Ink  Entries  are  always  to  be  transferred  somewhere  after  the  closing  lines  are  ruled  and  the  foot- 
ings entered;  but  no  red  ink  amount  is  ever  transferred  to  two  places  in  the  same  ledger.  If  it  goes  to  Loss  and 
Gain  it  is  not  brought  down  and  vice  versa. 


CAMPBELL'S    ACTUAL   ACCOUNTING  75 

(f)  The  one  remaining  item  in  the  Loss  &  Gain  columns  is  Interest  and  Discount,  $7.74. 
The  closing  of  this  account  will  be  so  like  the  closing  of  Merchandise  Discounts  in  (b),  that  the 
student  should  be  able  to  close  it  without  any  additional  instructions. 

(g)  To  close  Loss  &  Gain  account  when  there  is  but  a  single  proprietor.  Observe,  first, 
that  the  debits  and  credits  of  this  account  are  now  identical  with  those  of  the  Loss  81  Gain  column 
of  the  completed  balance  sheet  (see  80)  ;  and  that  the  difference  between  these  columns  (add 
them  carefully  in  pencil  as  you  would  those  of  any  other  ledger  account)  is  the  same  as  the  red 
ink  line,  C.  W.  Burke's  Net  Gain  in  the  balance  sheet.  Enter  this  amount  on  the  debit  side  of 
Loss  &  Gain  account,  in  red  ink,  on  the  first  blue  line  beneath  the  pencil  figures,  with  the  date, 
the  explanatory  phrase,  C.  W.  Burke,  Prop.,  and  the  ledger  page,  /,  (C.  W.  Burke's  account) 
as  a  reference  number;  then  rule,  and  enter  the  footings  as  in  other  accounts  that  you  have 
closed.  After  ruling,  transfer  the  red-ink  amount,  $263.02,  to  the  credit  side  of  the  proprietor's 
account  on  page  i,  entering  it  on  the  next  line  below  the  investment,  in  black  ink,  with  the  date 
of  closing,  the  explanation.  Net  Gain,  and  the  page  of  the  Loss  &  Gain  account  as  a  reference 
number.   See  Model  Ledger,  No.  2. 

(h)  To  Close  the  Proprietor's  Account,  ist,  In  General. — Add  the  columns  of  the  account 
in  pencil,  including  the  item  of  gain  (as  it  is  in  this  case)  or  loss  (as  it  might  be  in  some  cases), 
and  on  the  debit  or  smaller  side  of  the  account,  on  the  first  vacant  blue  line,  enter  the  difference 
between  the  two  sides  of  the  account  in  red  ink,  with  the  date,  the  explanation,  Present 
IVorth^  or  Net  Present  Worth^  as  the  case  may  be;  and  after  ruling  and  entering  the  footings, 
as  in  closing  other  accounts,  bring  down  the  red  ink  entry  with  its  date  and  explanation  to  the 
opposite  side  of  the  account  below  the  closing  lines,  in  black  ink.  If  the  credit  side  should  be  the 
smaller,  the  red  ink  entry  would  be  on  that  side  and  the  explanation  would  be  Net  Insolvency. 

2nd.  Special.  To  make  special  application  of  the  preceding  instructions  to  the  closing  at  this 
time,  there  being  no  figures  on  the  debit  side  of  the  account,  it  is  only  necessary  for  you  to  add  the 
credit  side  in  pencil  and  to  write  the  sum  in  red  ink  on  the  debit  side  on  the  first  blue  line  be- 
neath the  heading  of  the  account,  with  the  explanation.  Present  Worth.  Then  rule  and  enter 
the  footings  which  will  be  the  same  as  the  present  worth,  and  bring  the  present  worth  down 
beneath  the  rulings  on  the  right  hand  side  of  the  account  in  black  ink,  with  the  date  and  the 
explanation,  Present  Worth. 

83.  This  finishes  the  real  work  of  closing  the  ledger.  The  other  accounts  are  closed  "To" 
or  "By  balance,"  when  closed,  but  when  to  close  them  and  when  to  leave  them  open  is  deter- 
mined by  other  principles  some  of  which  are  as  follows : 

(a)  Bills  Receivable  and  Bills  Payable  are  to  be  ruled  and  footed  when  they  balance, 
except  when  that  would  cause  too  frequent  ruling  of  the  page  to  look  well  or  to  be  of  practical 
advantage.  When  the  balance  of  the  account  represents  a  few  notes  scattered  through  a  rather 
long  account,  it  is  well  to  rule  and  to  bring  the  balance  down,  itemizing  it  in  the  red  ink  balance 
entry. 

(b)  Personal  Accounts  are  kept  both  for  the  accommodation  of  customers  who  do  not  choose 
to  pay  cash,  and  for  the  information  of  the  merchant  who  wishes  to  know  from  year  to  year  the 
extent  of  his  business  with  different  firms.  They  are  to  be  ruled  when  they  balance,  except  as 
noted  in  (a)  or  when  the  total  of  the  account  for  a  definite  length  of  time  is  an  item  of  important 
information  to  the  proprietor.  The  accounts  of  any  house  with  its  creditors  and  the  accounts  of 
wholesale  houses  with  their  customers,  are  accounts  that  should  be  permitted  to  run  into  totals 
of  six  months  or  a  year,  first,  in  order  to  compare  the  business  done  with  them  in  one  year  with 
that  of  another  year  (see  70)  and  second,  in  order  to  know  readily  the  amount  of  business  a 

1.  Present  Worth  is  the  correct  term  in  the  present  instance. 

2.  Net  Present  Worth  is  the  correct  phrase  when  there  are  debits  also  in  the  proprietor's  account. 

3.  Net  Insolvency  is  the  correct  phrase  to  describe  the  balance  when  the  debit  side  of  the  account  Is  the 
larger,  for  the  proprietor  is  then  insolvent. 


76 


CAMPBELL'S   ACTUAL  ACCOUNTING 


firm  is  getting  from  you,  or  giving  to  you  when  a  question  of  concession  in  prices  arises.  In 
a  Retail  Business,  when  a  credit  system  is  followed  and  statements  of  the  condition  of  personal 
accounts  are  regularly  rendered  every  month,  the  personal  account  is  usually  closed  and  the 
balance  brought  down  monthly  when  the  statement  is  rendered.  For  the  form  of  this  state- 
ment, see  84,  below. 

0  STATEMENT.  »  (\\\  ftatmrnl of  Amnmt. 

84  (a)  ^^^^=~^  V  /  


yV:>^>l-<^!g<ag^ 


9n  Arrount  Xul) 


Geo.  W.  CRADIT 


Bankm-Crabia  Company 


GROCERIES    ^^^    DELICATESSEN. 


<:^-^^!^y}^.^:^yi^<e<,^^J/ 


^fl^ 


.2^ 


^uc 


t;^--^^e^y^^,^^^fr»,.^ 


""T^-y  ^T^S^T,!^^^ 


"^^»g?-^^^a-r>rZ^<!^^,aigi^  . 


..1^ 


.^-£ 


-2^ 


^-^=21. 


..^^2 


4i;£. 


Note.  A  single  debit  or  credit  item  would  be  entered  in  the  right-hand  column  only,  unless  as  is  some- 
times the  case,  the  bookkeeper  attempts  to  keep  the  statements  abreast  with  the  postings.  In  this  case  items 
would  always  be  entered  in  the  left-hand  column  and  might  in  some  cases  prove  to  be  single  items  at  the  end 
of  the  month. 

(C) 


% 


i 


C.tVBurkeb 

C&tn/c^ 

Tryade 

^rjVdte  Prfce  L/oT 

Cost 

Profit 

A/etiS.P 

L/^t  R 

J>/ccot/r?T 

Class  B.   Flour, 



Plllsbury's  Flour, brls. 

5.00 

5?6 

6.25 

6.00 

less 

12  1/E^ 

1/8  brl.   sks. 

5.75 

5% 

6.03  3/4 

6.90 

II 

It 

1/4     " 

5.60 

5?5 

5.77  1/2 

6.60 

" 

It 

Class  C.  Sugar, 

Gran.  Sugar 

4.50 

10  56 

4.95 

5   65  5/7 

n 

H 

Class  D.   Tea  and  Meats, 

£.   B.   Tea 

.33  1/3 

20  ^ 

.40 

.60 

n 

£03f 

Y.   H.      " 

.££ 

It 

.30 

.37  1/2 

m 

n 

Uno.    Jap.   Tea 

.33  1/3 

ft 

.40 

.50 

n 

It 

Gunpowder     " 

.27   1/2 

" 

.33 

.41   1/4 

" 

" 

Star  Sliced  Bon 

2.45 

n 

2.94 

3.43 

" 

14  2/756 

VB  Corned  Beef 

1.70 

n 

2.04 

2.38 

It 

II 

VB  Roast  Beef 

1.70 

n 

2.04 

2.38 

" 

n 

VB  ChlllConCame 

.85 

n 

1.02 

1.19 

It 

n 

VB  Corned  Beef  Hash 

1.65 

n 

1.98 

2.31 

" 

It 

VB  Chicken  Loaf 

1.80 

n 

2.16 

2.52 

It 

n 

VB  Roast  Mutton 

1.80 

It 

2.16 

2.52 

It 

11 

VB  Bnls.  Pigs  Feet 

1.65 

It 

1.98 

2.31 

It 

" 

Columbia  Bologna 

2.00 

" 

2.40 

2  80 

" 

Star  Hams 

.12  1/2 

" 

.16 

.17  1/2 

" 

Star  Bacon  Narrow 

.22  1/2 

It 

.27 

.31  1/2 

" 

VB  Sliced  DBf  Insides 

.29 

n 

.34  4/5 

.40  1/3 

" 

Class  B.  Fruits,  etc. 

S.   C.    Rice 

.06 

L6   2/3  36 

.07 

.08 

Japan  Rice 

.03 

n' 

.03  1/2 

.04 

" 

Apples,   Rom.   B. 

2.40 

II 

2.80 

3.20 

" 

"           Jennetings 

3.00 

n 

3.50 

4.  00 

Class  F.    Glassware, 

Glass  Tumblers 

8.55 

LI   1/9  % 

8  50 

11.40 

" 

16  2/3?& 

"       Bellshp 

9  30 

It 

10.33  1/3 

12   40 

Wines 

13  50 

" 

15.00 

18.00 

"    . 

Saucer  Champ. 

20   25 

n 

22.50 

27.00 

Hdld.   Lemonades 

32  40 

n 

36  00 

43    20 

CAMPBELL'S   ACTUAL  ACCOUNTING  fJ 


(d) 


Cl)ester  W.  iSurfee 

JOBBER  IN  GROCERIES  AND  GROCER  S  SUNDRIES 
COLLEGE  CITY   Y.  S. 


Vessrs.  VcConnell  &  Conpany, 

Fairfax, 

Y.  S. 

Gentlenent — 

In  aocordanco  with  your  order  of  Pobroary  19,   i  have 
been  pleased  to  forward  to  you  by  freight,- 

100  brlB,  "Plllshnry'a  Beat"  Flour, 
50    "         Itanan  Beauty  Apples 

I  troist  that  the  shipnent  will  reach  you  promptly  and 

in  good  condition.     Enclosed  herewith  la  ahlpping  invoice 

covering  the  order. 

I  am  not  aiarpriaed  that  you  like  Pillabury'a.     The  demand 
that  you  find  for  it  is  quite  universal  among  those  that 
demand  the  bent,  and  apeaks  well  for  both  the  taste  and 
the  Judgment  of  your  patrons. 

Trusting  that  I  may  have  the  pleasure  of  serving  you  further 
in  any  way  possible,   I  remain. 


Very  truly  yours. 


CV7B-GG 

February  21, 
1      9    •.    •  . 


Note.  The  above  is  presented  as  an  illustration  of  a  form  letter  prepared  to  accompany  an  invoice.  With 
the  exception  of  the  paragraph  referring  to  Pillsbury's  Flour  (which  is  specially  dictated)  it  is  prepared  by  the 
stenographer  "from  the  form"  without  any  instructions  from  the  proprietor. 


78  CAMPBELL'S   ACTUAL   ACCOUNTING 

85.     Model  Ledger  No.  2. 


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CAMPBELL'S   ACTUAL   ACCOUNTING 


79 


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CAMPBELL'S  ACTUAL  ACCOUNTING 


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CAMPBELL'S   ACTUAL   ACCOUNTING 


81 


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82 


CAMPBELL'S   ACTUAL   ACCOUNTING 


86.     Immediately   after    closing   your    ledger,  you  will  take  a  trial  balance  to  prove  that  the 
closing  has  been  done  correctly  and  that  all  balances  have  been  brought  down  properly  on  the 
right  side  of  each  account.     You  will  then  make  out  on  loose  sheets  of  journal  paper  a  state- 
statement    of    the    Condition   of    C.    W.    Burke's    Business,    February   21,    19 


.    Trial    Balance,    Face    of    Ledgor. 

C.    W.    Burke,    Proprietor 

Cash 

Merchandise  (Inventory  $3936.01) 

Merchandise  Discount 

Expense   (Inventory  $36.00) 

Freight 

Salaries,     (Liabilties    inventory,    .$37.50} 

Interest   &    Discount 

Billi*    -Receivable 

Bills    Pai'able 

MoConnell    &    Company 

Anderson   fc    Anderson 

F.    H.    Burns, 

The  Keystone  Conpany 


Resources  &  Llabi litles ------ 

Resources 

Cash 

liorchandise,  per  inventory 

Expense,  per  inventory 

Bills  Receivable^,  McConnell  £  Co.  Accept, 2-1,  30d 

McConnell  &  Company 

Anderson  &  Anderson 

F.  H..  Burns 

Total  Assets 

Liabilities  ^- 

Salaries,  (Earned  but  not  charged,  Lla.  Inv. ) 
Bills  Payable, The  Keystone  Company,  2-21f(,30d,  353.04 
Armour  Packing  Co.  1-10,  60d.     940.06 
The  Keystone  Company 

•  Total  Liabilities 


net  Resources,  C, 


Burke's  Present  Worth* 


Losses  &  Gains 

--  Gains  -- 
Uerchandiso  Sales 

Merchandise  Cost,  total  $11464.34 

Deduct  Goods  on  Hand,  (Inventory)    3936.01 
Gives  Cost  of  Goods  Sold 
Subtracting  from  Sales  gives  Mdse.  Gain 
Merchandise  Discount,  On  Invoices  Bo't 

Allowed  on  Sales 
Net  Gain  in  Udse.  Discounts 
Interest  &  Discount,  Int.  Col.  on  notes 
Total  Gains 

--  Losses  -- 
Expense,  Total  debit 

Inventory  deducted 
Net  loss  in  Expense 
Freight,  On  incoming  invoices 
Salaries,  Ledger  debit 

Earned  but  not  charged   (Lift.  Inv.) 
Total  loss  in  Salaries 
Total  Losses  , 

C.  "W.  Burke's  Net  Gain, 


08147.54 


7626.33 

$57.44 
25.67 


$302.00 
36.00 


$50.00 
37.50, 


1)i8poBition  of  Not  Gain 

C.  W.  Burke's  Capital  on  commencing 
Ret  Gain  as  abo^e 

C.  H.    Burke's  Present  Worth 


924 

114t4 

2  5 

,302 

42 

50 

•2.124 

195 

1365 

22  50 

214 

744 


19903 


924 
3936 
36 
648 
717 
863 
112 


37 

1293 
64  5 


619 


31 
7 


266 

42 


_§Xlfl 


41 


21 


5000 
263 


5oao 

8147 
5  7 


7 
1675 
1488 
64*^ 
1.18  6 
•  102 
1389 


19903 


7238 


1975 


5263 


658 


395 


263 


5265 


GO 


54 
44 


74 
96 
12 
47 
96 
00 
18 


U. 


82 


80 


02 


52 


M 


02 


02 


CAMPBELL'S   ACTUAL   ACCOUNTING  83 

ment  of  the  condition  of  Mr.  Burke's  business  suitable   to   submit  to   Mr.   Foley  the  incoming 
partner  in  form  as  shown  on  page  82. 

87.  All  work  having  been  completed  as  instructed,  you  are  almost  ready  to  submit  the 
books  of  C.  W.  Burke's  business  to  your  teacher  for  final  approval.  Carefully  remove  all  check 
marks,  finger  marks  or  other  blemishes,  leaving  only  your  entries,  postings  and  pencil  footings, 
and  place  your  books  all  closed  (not  open  as  per  previous  instructions)  on  your  teacher's  desk 
accompanied  by  answers  to  the  following: 

88.  Questions  to  Test  Your  Knowledge.  Copy  each  question  and  follow  it  with  your  answer, 
being  careful  of  your  penmanship  and  English. 

1.  What  is  it  to  buy  goods  "on  account." 

2.  What  is  the  signification  of  January    10,  dating,  on  invoices  i-P  and  2-A? 

3.  What  is  it  to  endorse  a  check,  note  or  draft? 

4.  What  is  the  form  of  endorsement  placed  by  Mr.  Burke  on  his  checks  in  17  (c)  called? 
See  Modern  Business  Law,  page  83.  What  other  forms  of  indorsement  are  in  common  use  in 
the  transfer  of  business  paper? 

5.  How  do  business  houses  keep  a  record  of  the  business  secured  by  their  traveling  men?  23 
(c)  foot  note. 

6.  Is  there  ever  any  advantage  in  having  checks  printed  to  read,  or  bearer,  instead  of,  or 
order f  Why? 

7.  Where  should  the  year  date  appear  in  every  ledger  account? 

8.  In  posting,  what  is  the  importance  of  checking  the  Journal  entry?  What  is  the  advantage 
of  using  the  page  of  the  Ledger  as  a  check  mark?  When  should  the  Journal  be  checked,  before 
the  item  is  posted  or  after  and  why? 

9.  Why  should  the  cash  balance  be  found  before  taking  a  trial  balance? 

10.  What  is  the  advantage  of  proving  Bills  Receivable  and  Bills  Payable  also  before 
taking  a  trial  balance?  Is  there  any  other  account  or  accounts  that  might  be  proven  to  advantage 
before  taking  the  trial  balance?  76  (c). 

11.  What  record  is  made  in  your  pass  book  when  you  discount  a  note  at  the  bank?  What 
if  you  leave  it  for  collection? 

12.  How  did  Mr.  Burke  give  you  authority  to  sign  his  name  to  checks?  In  order  that 
your  authority  to  sign  his  name  to  notes  and  other  business  paper  might  not  be  questioned,  what 
additional  evidence  of  authority  did  he  give  you?  How  do  you  in  signing  papers  indicate  that 
you  hold  such  authority? 

13.  Which  should  be  filled  out  first,  the  check  or  the  stub?    Why? 

14.  If  cartage  be  charged  to  customers  for  delivery  of  goods  to  depot  or  express  office 
should  it  be  debited  to  the  same  account  as  cartage  on  incoming  goods?    Why  or  why  not? 

15.  Distinguish  between  interest  receivable  and  interest  payable.  May  these  both  be  kept 
in  the  same  account? 

16.  Distinguish  between  Interest  &  Discount  as  an  account  and  Merchandise  Discount. 

17.  What  is  trade  discount? 

18.  What  is  said  as  to  the  propriety  and  importance  of  giving  references  when  asking  for 
business  credit? 


Footnotes  to  Statement    on  Opposite  Page. 

1.  In  case  the  list  of  notes  receivable  or  payable  or  both  should  be  large  it  would  be  best  to  refer  to  a 
schedule  in  which  they  are  listed,  rather  than  to  enter  a  large  list  in  the  statement.  See  inventories  in  Mer- 
chandise, Expense  and  Salaries. 

2.  The  student  should  observe  that  in  closing  Merchandise  the  inventory  was  added  to  the  sales  (credit) 
instead  of  being  subtracted  from  the  cost  (debit).  This  is  a  bookkeeper's  way  of  subtracting  and  while  it 
produces  the  same  result  it  is  not  as  clear  to  persons  who  are  not  bookkeepers  as  the  form  in  86. 

3.  The  student  should  observe  that  red  ink  is  used  in  this  statement  in  the  lines  showing  the  proprie- 
tor's present  worth,  although  it  was  not  permitted  in  the  balance  sheet.  It  is  here  used  for  emphasis  and 
prominence  there  being  no  chance  in  a  statement  of  this  kind  to  mistake  the  red  ink  for  that  used  in  the 
usual  balance  entry  as  in  the  Losses  and  Gains  columns  of  the  balance  sheet. 


84 


CAMPBELL'S   ACTUAL   ACCOUNTING 


19.  Where  should  the  endorsement  of  a  check  or  note  be  written? 

20.  When  should  personal  accounts  be  closed? 

21.  Why  not  enter  the  proprietor's  present  worth  in  the  Liabilities  column  of  the  balance 
sheet  in  red  ink?  Why  is  red  ink  used  in  the  statement  in  86,  in  recording  the  proprietor's 
present  worth,  if  not  permissible  in  the  balance  sheet? 

22.  When  an  inventory  amount  is  arbitrarily  entered  on  the  debit  or  credit  of  an  account, 
how  is  the  balance  of  the  books  preserved?    79  (f). 

23.  What  is  the  signification  of  the  check  marks  placed  against  the  prices  in  Invoice  5-G 
Sec.  57?  What,  the  signification  of  those  placed  against  the  figures  in  the  quantity  column?  What, 
the  signification  of  the  check  marks  following  the  extensions?  after  the  total?  after  the  discount? 
after  the  net  amount  of  the  invoice? 

24.  On  which  side  is  the  balance  of  Cash  account?  On  which  side  is  the  red  ink  balance 
entry?  Where  is  this  balance  entry  transferred  after  the  account  is  ruled?  On  which  side  is 
the  red  ink  entry  of  inventory  found  in  the  Merchandise  account?  Where  is  it  transferred  after 
the  account  is  ruled?  On  which  side  is  the  red  ink  entry  of  gain  in  Merchandise  found?  Where 
is  it  transferred  after  ruling  the  account? 

25.  So  far  as  you  have  been  instructed,  is  a  red  ink  entry  ever  transferred  to  two  places  in 
the  same  ledger?    Is  it  ever  left  in  the  account  without  being  transferred  some  place? 

89.  Final  Report.  Take  from  your  Prepared  Blanks,  Form  38,  and  fill  it  out  carefully.  When 
it  is  complete,  copy  it  carefully  in  the  form  below  and  place  on  the  teacher's  desk  all  the  books 
u^ed  in  this  practice,  with  your  answers  to  the  preceding  questions,  your  text  book,  and  your 
copy  of  the  following: 

REPORT 

Report  of  School  Duties'-     I  take  bookkeeping Hours  a  day. 

Hours  worked  since  last  report ,  Absent Total No.   of  letters  written 

No.  of  Invoices  bo't  of  wholesale  houses 

No.  of  Payments  made  in  cash ;   in  notes ;    in    acceptances ;    Total 

No.  of  Payments  rec'd  in  cash ;   in  notes ;     in    acceptances ;     Total 

No.  of  Entries  made Average  per  hour Time  on  trial  balance hours. 


NOTES                                                 1 

CASH 

Bills  peceivdhle^  Ledger  Balance 

Ledger  Balance 

Tn  bank,  Rtb.  No.          , 

In  safe,  Currency 

Tn  safe,  ChftokH, 

Total  value  of  notes  in  the  safe .... 

Bills  Payable,  Ledger  Balance 

Total  unpaid,  in  bill  book. 

Total  Cash  on  hand 

Respectfully  submitted, 


.191. 


TEACHER'S 


STAMP 


TEACHER'S  MARKING 


Accuracy. . . 
Neatness . . 
Orderliness. 
Records  . . . . 
Progress..  . 
Average . . . . 


CAMPBELL'S   ACTUAL   ACCOUNTING  85 

BUSINESS    TRANSACTIONS 


OUTLINE  I. 


90.     Introductory  Information. 

To  the  student.  You  are  about  to  begin  practice  in  actual  bookkeeping  and  accounting.  While 
the  practice  you  have  just  completed  has  not  been  exhaustive,  yet  it  has  been  extensive  enough 
for  the  immediate  needs  of  the  business  you  v^ill  be  required  to  do  and  further  instructions  will 
be  given  you  later.  In  a  smaller  way  you  are  now  exactly  in  the  situation  of  a  majority  of  busi- 
ness college  graduates  when  entering  upon  their  first  business  positions.  The  practice  you  have 
just  completed  will  correspond  to  your  business  college  instruction,  and  the  actual  business  that 
is  just  before  you  will  correspond  to  the  work  in  an  outside  position  with  just  these  exceptions  in 
your  favor,  namely  that  you  will  not  be  hurried  to  do  work  any  faster  than  you  can  do  it  and 
do  it  right  and  that  you  will  have  in  your  teacher,  one  to  whom  you  can  go  for  assistance  in 
your  difficulties,  rather  than  an  employer  to  whom  you  would  fear  to  confess  your  troubles. 

One  principal  point  you  should  fix  in  your  mind  at  once ;  this  lesson  should  mark  for  you  the 
dividing  line  between  school  boy  and  business  man.  You  may  have  done  the  work  of  the  preceding 
practice  as  a  school  boy,  but  you  must  do  the  rest  of  your  work  as  a  business  man  if  you  expect 
to  enter  business  successfully  on  the  completion  of  the  course. 

I.  Realize  that  you  are  making,  right  here  in  this  school  room,  your  first  business  record. 
When  you  go  out  to  a  position,  if  you  apply  through  an  employment  agency,  you  will  be  re- 
quired to  name  as  references  some  persons  who  know  you  of  whom  the  agency  may  make  inquiry, 
not  alone  as  to  your  ability  as  an  accountant,  but  as  to  your  general  habits  and  character.  Or,  if 
you  have  secured  a  situation  that  brings  you  into  a  position  of  financial  responsibilty,  you  will 
apply  to  some  bonding,  or  fidelity  insurance  company  to  go  on  your  bond.  Again  you  will  have 
to  name  references.  The  questions  that  will  be  asked  of  your  references  will  be  very  searching. 
We  present  on  a  following  page  such  a  set  of  questions  with  the  accompanying  letter  just  as  it 
is  sent  out  by  the  American  Bonding  Company  of  Baltimore.  You  would  do  well  to  make  a  copy 
of  it  and  then  fill  in  the  blanks  with  honest  answers,  and  see  whether  or  not  it  is  just  such  a 
letter  as  you  would  like  to  have  written  about  you,  and  whether  or  not  you  think  it  would  secure 
you  a  position,  or  recommend  you  to  a  bonding  company.  If  any  of  your  habits  are  such  that 
you  would  not  want  them  reported  in  such  a  set  of  questions  and  answers,  better  change  them. 
A  good  character  is  an  invaluable  business  asset.  Naturally  your  teacher  or  business  college 
proprietor  will  be  one  of  the  references  on  whose  favorable  opinion  you  will  rely  for  a  position. 
Do  not  expect  anything  of  either  of  them  but  strict  justice  in  answer  to  such  questions  as  are 
asked  by  the  American  Bonding  Company  and  be  careful  to  make,  while  you  are  here  in  school, 
a  record  to  which  you  will  be  proud  to  point  through  all  your  future  life. 

(a)  Always  remain  steadily  at  your  desk  busily  engaged  in  your  work  until  the  signal  for 
dismissal  or  a  call  for  a  class.  The  young  man  who  forms  a  habit  of  getting  his  desk  in  order 
and  then  standing  with  "his  hand  on  his  hat  and  his  eye  on  the  clock"  waiting  for  the  moment, 
when  he  may  go,  will  never  retain  a  place  if  he  should  secure  one,  and  will  not  be  recommended 
for  a  position  so  long  as  there  are  others  with  more  industrious  habits  wanting  places. 

(b)  Communication  with  other  students.  During  that  part  of  the  day  devoted  to  business 
practice  you  will  be  expected  to  conduct  yourself  in  an  orderly,  business-like  manner,  being 
always  at  your  desk  ready  for  the  transaction  of  any  business  that  may  be  presented,  except 
when  you  are  necessarily  absent  for  the  transaction  of  business  at  the  office  or  at  the  desk  of 
another  student. 

It  is  out  of  order  during  business  hours : 

For  more  than  two  students  to  be  talking  together  at  one  time ; 


86  CAMPBELL'S   ACTUAL   ACCOUNTING 

For  students  to  talk  on  any  subject  foreign  to  their  business;  or  to  talk  on  business 
except  when  one  of  them  is  at  his  own  desk ; 

To  talk  business  at  any  time  in  a  tone  loud  enough  to  attract  the  attention  of  any 
person  except  the  one  to  whom  the  conversation  is  addressed ; 

Or  for  any  student  to  attempt  to  communicate  farther  than  the  adjacent  desk,  except 
by  going  to  the  desk  of  the  student  with   whom  the  business  is  to  be  done. 

(c)  Disorder.  It  is  out  of  order  at  any  time  in  the  Commercial  Room  whether  before  the 
session  opens  or  after  it  closes,  or  during  any  part  of  the  noon  intermission,  for  any  one  to 
engage  in  loud  talking  or  laughing,  or  any  exercise  that  would  tend  to  disturb  any  one  who  may 
be  posting  books  or  preparing  a  lesson.  In  short,  you  are  a  business  man  in  business  and  it  is 
expected  that  you  will  conduct  yourself  in  a  business-like  manner,  pushing  your  business  in  busi- 
ness hours  and  posting  or  closing  books  out  of  business  hours,  whenever  you  can. 

(d)  General  Behavior.  Habits.  In  the  halls  or  on  the  street,  you  are  expected  to  conduct 
yourself  as  a  gentleman  or  lady,  not  only  that  you  may  reflect  credit  upon  yourself  and  your 
school ;  but  also  that  your  actions  may  not  interfere  with  your  securing  a  position  when  one  is 
offered^. 

(e)  Honesty.  This  is  absolutely  essential  to  business  success  and  in  this  again  you  will  be 
judged  by  your  record  in  the  school  room.  Be  as  strictly  honest  in  your  business  transactions 
here,  as  you  expect  to  be  in  real  life,  and  be  strictly  honest  with  yourself  and  your  teacher  in  the 
matter  of  your  studies  and  recitation.  No  student  ever  wrongs  himself  so  much  as  the  one  who 
attempts  to  cheat  his  way  through  school.  In  many  cases  such  dishonesty  is  purely  thoughtless 
or  is  provoked  by  unwarranted  suspicion  on  the  part  of  teachers ;  but  in  most  cases  it  is  the 
natural  outgrowth  of  a  dishonest  nature  that  cannot  be  trusted  unless  it  be  reformed.  It  is  the 
principle  of  this  school  to  rely  upon  every  student's  honor  and  to  trust  each  as  a  gentleman  or 
lady;  and  it  is  our  conviction  that  a  student  who  will  betray  this  confidence  cannot  be  trusted 
in  the  business  world,  and  is  not  worthy  to  receive  the  diploma  of  any  college. 

2.  When  you  change  from  one  position  to  another  in  business  life,  your  record  made  in  your 
first  position  will  follow  you ;  therefore,  when  you  get  into  a  position,  any  position,  be  sure  that 
you  "make  good."  Do  not  imagine  that  you  are  doing  more  work  than  you  are  being  paid  for, 
or  slight  your  work,  thinking,  "I  am  doing  all  I  am  paid  for  anyhow."  One  who  does  that  never 
gets  an  advance  of  salary,  and  if  dull  times  requires  a  reduction  of  the  force,  is  dropped,  rather 
than  the  one  who  is  always  giving  his  employer  his  best  and  most  eflfective  services  during  the 
hours  or  seryice  regardless  of  the  amount  of  his  salary.  Make  it  a  point  to  give  so  good  service 
that  you  will  never  leave  a  position  except  of  your  own  motion  to  go  to  a  better  one ;  and  never 
take  the  matter  of  collecting  your  salary  into  your  own  hands  unless  it  is  a  case  that  justifies 
you  in  taking  legal  action.  Many  a  young  man  working  on  a  commission,  having  a  dispute 
with  his  employer  over  commissions,  has  retained  money  that  he  should  have  turned  in,  and 
while  the  employer  may  not  have  had  a  case  that  would  justify  him  in  prosecuting,  or  some 
other  business  reason  may  have  prevented  his  taking  legal  action,  the  young  man  has  clouded  his 
record.  He  cannot  avoid  giving  that  employer  as  a  reference,  for  he  is  required  to  account  for  all 
his  time  since  he  entered  on  employment,  and  if  the  employer  was  unjust  in  settlement  he  will  not 
hesitate  to  represent  the  affair  from  his  own  standpoint  when  questioned  by  an  agency.  Follow- 
ing is  a  copy  of  the  letter  sent  out  to  applicant's  references,  followed  by  a  set  of  questions  such 
as  are  asked  of  one's  former  employers  when  a  question  of  reliability  arises. 


1.  A  business  man  in  Rochester,  N.  Y.,  applied  to  the  Rochester  Business  University  for  a  bookkeeper,  and 
a  young  man  who  had  completed  the  course  creditably  was  recommended.  "I  don't  want  him,"  was  the  reply, 
"I  see  him  sitting  around  the  Commercial  Hotel  entrance  every  time  I  come  down  town."  The  young  man 
perhaps  had  "nothing  else  to  do,"  but  had  he  been  spending  his  time  in  work  at  home,  or  in  the  public  library 
and  reading  room,  he  would  have  secured  the  place  that  offered. 


CAMPBELL'S    ACTUAL    ACCOUNTING  87 

(a) 

American  Bonding  Company  of  Baltimore, 

GENERAL  SURETY  AND  BONDING  BUSINESS. 

Baltimore, 191 ^ 

Dear  Sirs: 

Mr —  of aged years,    has 

applied  to  this  Company  for  its  surety  upon  his  bond  tor as 

in  the  employ  of (character  of  business)  

at ,  and  has  referred  us  to  you  for  information  regarding  his  personal  stand- 
ing, business  record,  etc. 

Will  you  kindly  send  us  an  early  reply  to  the  questions  within  submitted,  for  the  confidential   informa- 
tion of  the  employer  and  this  Company,  that  prompt  consideration  may  be  given  to  this  application. 

Respectfully  yours. 
To  Mr 


American  Bonding  Company  of  Baltimore. 


QUESTIONS  ANSWERS 


a.  How  long  have  you  known  the  applicant?  }  a. 

b.  What  is  your  relationship,  if  any,  to  applicant?      (  b. 
Have  you  had  recent  opportunities  of  observing  the 

applicant's  personal  conduct,  habits,  etc.? 


What  is  the  character  of  the  applicant's  home  and ) 
domestic  surroundings?  f 


By  whom  has  applicant  been  employed  during  your  / 
acquaintance?  f 


Has  he  ever  been  dismissed  from  any  situation  or  en- 
gagement, and  if  so,  under  what  circumstances? 


S  Gambling,  Betting?. 
Speculation?  
Unfavorable  Associates? 


Excessive  Use  of  any  Liquor,  Drug  or  Opiate?. 


Do  you  regard  him  as  generally  economical  and  living  ( 
within  his  means?  f 

Have  you  ever  known  or  heard  of  any  personal  or  1 
business  transaction,  in  which  the  applicant  could  I 
be  charged  with  dishonorable  conduct?  J 


a.  Has  he  ever  been  in  business  on  his  own  account?  [  ^• 

b.  Has   he  at  any  time  been  bankrupt  or  made  an  /  b. 
assignment?                                                                        [ 

c.  If  so,  please  give  particulars,  when  and  where?      f  c 


10.  Are  you  aware  of  his  being  at  present  under  any  ex-  \ 
cessive  debts  or  liabilities  whatever?  f 


11.  Has  he  been  prompt  in  paying  ordinary  debts?  [ 

12.  What   is   the    nature    and   value   of   the   applicant's  1 

private  property?  y  a. 

b.  Is  it,  to  your  knowledge,  encumbered  in  any  way?  J  b. 


13.  a.  Are  you  aware  if  he  has  income  apart  from  the  1 

earnings  of  this  position?  I  a. 

b.  If  so,  please  state  approximate  amount  and  sources?  ]  b. 


14.     From  your  acquaintance  with  him  and  his  antece- 
dents do  you  regard  him  as  entirely  trustworthy? 


15.     Do  you  consider  him  competent  and  capable  of  fill- 
ing the  position  referred  to? 


16.     Are  you  aware  of  any  circumstances  affecting  the  1 
surroundings    of    the    applicant's    position    or    em- 
ployment,  under  the  Bond  now  applied  for,  which  !► 
in   your   estimation,   would   render   a   risk   as   his  j 
surety  in  any  way  undesirable?  j 


Signature  of  Reference  - 

Occupation  _ 

Dated    

//  your  knotoledge  of  the  applicant  does  no't  admit  of  your  answering  the  above  questions,  will  you  kindly 
give  the  names  and  addresses  of  parties  who  may  he  able  to  give  such  information,  or  make  such  general  re- 
marks  as  you  choose  on  the  other  side. 


88  CAMPBELL'S  ACTUAL  ACCOUNTING 

Extract  From   Letter  to  Former  Employers: 
Dear  Sir: 

As  we  depend  largely  upon  an  applicant's  record  with  his  Former  Employers,  for  an  estimate  of  his  present 
worthiness  of  guarantee,  we  would  thank  you  for  replies  to  the  questions  asked,  assuring  you  that  any  in- 
formation given  us  will   be  treated  as  strictly  confidential,  and  will  be  used  by  us  solely  in  judging  the  risk. 

Very  respectfully  yours, 

American   Bonding  Company  of  Baltimore. 

QUESTIONS. 

1.  (a.)     When  did  the  applicant  leave  your  service?      5.     For  what  reason  did  he  leave  your  service? 

(b.)     How  long  had  he  been  with  you?  6.     (a.)     Was  he  in  debt  to  you  at  the  time  he  left  your 

(c.)     What  position  did  he  occupy  in  your  service?  service? 

2.  (a.)     Did  his  duties  embrace  the  handling  or  cus-  (b.)     If  so,  give  particulars  of  such  indebtedness, 

tody  of  cash?  and  state  whether  it  has  been  liquidated? 

(b.)     Did  he  always  make  prompt  and  correct  set-     7.    Judging  from  your  knowledge  of  him,  do  you  con- 
tlement  of  such  handling?  sider   him   a   proper   person   to   guarantee 

against  dishonesty? 

3.  (a.)  Was  he  required  to  keep  accounts?  8.  If  you  would  suggest  further  inquiry  along  this 
/v,  -.  TTT  1,  e  1  J  i  •  ii-  js  line,  will  you  kindly  give  names  and  ad- 
(b.)     Was   he    careful   and^  accurate   m    the   dis-  ^^^^^^^   of   parties    to   whom   you    would 

cnarge  ot  nis  auty.  ^^^^^  ^g, 

4.  Were  his  habits  good  while  in  your  employ? 

3.  Plan  of  School  Room  Business. — A  few  words  of  explanation  as  to  the  customs  of  the 
business  community,  of  which  as  a  student  in  this  school  you  have  now  become  a  part,  will  be  in 
place  before  you  attempt  to  begin  your  business. 

While  we  cannot  in  a  school  have  that  large  body  of  consumers  that  makes  and  maintains 
commerce,  we  can  plan  a  circulation  of  goods  that  will  reproduce  very  nearly  the  conditions  of 
business  and  afford  training  in  bookkeeping,  commercial  law,  commercial  correspondence,  com- 
mercial discounts,  commercial  paper,  and  that  wide  field  of  commercial  practice  generally 
described  as  commercial  customs. 

To  state  this  plan  briefly,  you  will  purchase  your  principal  or  wholesale  stock  of  goods  from 
the  manufacturers'  and  importers'  agents  at  College  Center,  Y.  S.,*  your  own  place  of  business 
being  known  as  College  City.  These  goods  you  will  sell  in  smaller  quantities  to  a  list  of  cus- 
tomers furnished  by  your  teacher.  As  these  customers  are  students  engaged  in  business  as  you 
are,  they  also  buy  at  College  Center  and  sell  to  student  customers,  and  your  name  will  be  on  the 
list  of  customers  furnished  to  some  of  them.  While  the  entire  matter  of  the  ordering  of  merchan- 
dise from  the  College  Center  houses  will  be  in  your  charge  that  you  may  have  practice  in  the  busi- 
ness correspondence  that  it  affords,  you  will  not  have  the  ordering  of  goods  from  the  students 
with  whom  you  are  listed  as  a  customer,  but  your  teacher  acting  as  purchasing  agent  for  your 
firm  will  place  these  orders  for  you  and  you  will  from  time  to  time  receive  invoices  for  entry, 
of  which  you  have  had  no  previous  knowledge,  which  are  the  exact  conditions  under  which  most 
accountants  labor.  You  will  accept  these  bills  as  they  come  in  without  question,  except  that  you 
have  a  right  to  require  the  seller  to  show  the  order  signed  by  your  purchasing  agent,  if  you  have 
any  doubt  of  its  existence,  and  you  will  proceed  to  check  up  the  invoices  and  enter  as  in  the  case 
of  bills  which  you  ordered  personally. 

Purchasing  the  goods  thus  from  different  sources  on  two  different  bases  of  price  forms  a 
basis  for  the  classifications  of  your  goods  into  two  departments  the  merchandise  of  which  you 
will  keep  entirely  separate.  The  goods  ordered  by  you  from  College  Center,  you  will  keep  in  an 
envelope  marked  Wholesale  Stock  or  Department  A  Goods  and  from  them  you  will  make  your 
sales  to  student  customers;  the  goods  bought  from  student  jobbers  through  your  purchasing 
agent,  you  will  keep  in  an  envelope  marked  Department  E,  and  these  goods  you  will  sell  to  the 
Townsite  &  Trading  Company  on  terms  to  be  stated  later. 


*Y.  S.    An  abbreviation  representing  the  words,  "Your  State."    The  student  may  use  these  initials  to  rep- 
resent the  State  or  he  may  use  initials  of  the  State  in  which  he  is  doing  business. 


CAMPBELL'S  ACTUAL  ACCOUNTING 


89 


4.  Careful  Work. — This  course  does  not  consist  in  sets  to  be  worked  out  like  problems  in 
the  grammar  school,  but  in  business  habits  to  be  acquired.  The  first  of  these  is  Accuracy,  abso- 
lute accuracy;  the  second,  Neatness;  the  third,  Orderliness  (in  and  about  your  desk)  ;  the  fourth. 
Records  and  the  fifth,  Progress.  Accuracy  and  Neatness  need  not  be  explained.  The  former  will 
count  three  points  and  the  latter  two  out  of  ten  in  every  grade.  Orderliness  and  Records  will 
count  two  points  each.  Orderliness  signifies  having  a  place  for  everything  and  everything  in  its 
place,  and  Records  includes  the  proper  memoranda  as  to  where  everything  is.  Proper  explanation 
of  the  entry  of  every  transaction,  the  insertion  of  the  reference  numbers  when  posting,  proper 
records  in  the  Bill  Book,  proper  references  to  the  filing  cases  for  papers  filed,  and  many  such 
memoranda  that  you  will  learn  about  later  are  included  in  the  grade  of  your  work  on  this  point 
and  are  very  important  items  in  the  making  of  an  accountant.  Progress  counts  only  one  point  in 
ten  and  does  not  have  much  influence  in  the  making  up  of  your  grade,  if  you  are  only  diligent. 
Speedy  work  is  very  desirable,  but  it  is  the  last  point  to  be  sought  in  your  education.  See  that 
your  work  is  perfect  in  Accuracy,  as  nearly  perfect  as  possible  in  point  of  Neatness,  perfect  in 
all  the  points  included  under  Orderliness  and  Records,  and  then  just  as  speedy  as  you  can  make 
it.  Failure  in  the  first  four  points  will  send  you  back  over  the  work  of  the  Outline  or  necessi- 
tate supplementary  work  that  will  more  than  overbalance  any  gain  you  may  think  to  make  by 
undue  haste. 

91.     The  First  Day's  Work.— 

I.  To  Obtain  your  Capital,  turn  to  your  book  of  "Drafts"  and  fill  out  the  first  blank  draft 
and  stub  exactly  as  in  the  following  form,  signing  your  own  name  in  place  of  the  words,  "Draw- 
er's Si2:nature." 


wyffljaaaflJsfflJKwaKffluc*^ 


m$ 


College    City.  Y.  S..  's^^^^^y     19 No  ;z^ 

/CfC^...<iC<r^,,^^^^^  Pay  to  the  Order  of 

-A^^.^^y^^:if£^ir^.c^^-,sz^,x^i^^  ^.>;:z>if'2>r^ -^^^S^^  ^ —  -Dollars 

College  Currency.  Value  Received  and  Charge  to  Account  of 


Your  drawing  this  draft  implies  that  the  College  Investment  Company  owes  you  money  or 
that  you  have  made  arrangements  to  obtain  money  from  them  for  the  purposes  of  your  invest- 
ment in  business.  The  fact  is,  that  your  teacher  has  made  arrangements  to  have  this  amount 
placed  to  your  credit  on  the  company's  books  and  he  will  accept  this  draft  as  president  of  the 
company.  Present  it  to  your  teacher  for  his  acceptance,  then  make  entry  as  follows,  at  the  top 
of  the  first  page  of  your  journal  after  writing  your  city,  state  and  the  date^  on  the  light  blue  line 
above  the  headline.  See  13,  or  Gilbert's  Twenty  Lessons^  266  and  277.  For  form  of  draft  see 
57  (6)- 

1l  The  student  will  use  the  date  of  the  day  on  which  he  makes  this  opening  entry.  Real  transactions  and 
real  dates  in  your  actual  accounting  instead  of  supposed  dates  and  illustrative  transactions,  as  in  Mr.  Burke's 
business,  are  in  order  now. 

2.  As  far  as  possible  in  the  actual  practice  of  this  text  there  will  be  duplicate  references  to  Gilbert's 
Twenty  Lessons  in  Bookkeeping,  as  well  as  the  sections  of  this  text.  References  to  Gilbert's  Twenty  Lessons 
will  hereafter  be  designated  by  the  initial  letter  G.,  followed  by  the  paragraph  number  in  light  face  type.  Ref- 
erences to  this  text  will  continue  to  be  by  bold  face   section  numbers  as  heretofore. 


90 


CAMPBELL'S   ACTUAL   ACCOUNTING 


When  your  draft  has  been  accepted  by  the  drawee,  that  is,  by  the  person  on  whom  it  is 
drawn — in  this  case  the  College  Investment  Co.,  it  becomes  cash  to  you.  All  sight  drafts  in 
your  favor,  whether  drawn  by  yourself  or  some  one  else,  are  counted  cash,  because  they  are  to  be 
paid  in  cash  on  presentation.  Instead  of  paying  this  draft  in  money  or  by  a  check,  your  teacher 
will  accept  it  "payable  at  the  College  Bank,"  an  expression  not  unusual  in  accepting  drafts,  and 
which  has  the  effect  of  making  the  draft  an  order  on  the  bank,  equivalent  to  a  check.  Observe 
that  this  is  the  only  form  of  acceptance  that  can  be  permitted  on  a  sight  draft. 


-■^^^e^e-t^^-^^,     '^.  s^^ :s,3/^.  y,  /f/^ 


'"l^^«z-<^<^ 


(^^i.1!^-c^Ay^^y^^^z^^■^i^^A.^^i^J 


^aoa 


■^aao 


2.  (a)  Deposit  the  draft  drawn  and  accepted  according  to  above  instructions,  first  endors- 
ing it  on  the  back  by  writing  your  name  across  the  left  end.  (See  17  and  61,  Footnote  2,  or 
G.  352.)  Observe  that  you  must  write  your  name  exactly  as  it  appears  on  the  face  of  the  draft. 
See  your  signature.  If  someone  else  had  drawn  the  draft  in  your  favor,  your  name  would  have 
appeared  in  place  of  the  word,  Myself.  Before  going  to  the  bank,  prepare  your  deposit  ticket 
as  instructed  in  18  or  G.  315.  Copy  the  items  of  this  deposit  ticket  on  the  fly  leaf  (or  back  of  check 
stub)  opposite  the  first  check  and  enter  the  amount  in  the  money  column  as  shown  in  66  (a)  and 
(b).    Submit  your  check  book  and  deposit  book  to   your   teacher   for   approval.^     When   work   is 

approved  ask  your  teacher  to  give  you  a  business  introduction  at  the  bank.^ 

(b.)  Draw  a  check  m  favor  of  Cash  for  $387.35  prepara- 
tory to  drawing  the  cash  from  the  bank.  See  section  52,  (b). 
Then  endorse  your  check  with  your  firm  name  across  the  back 
about  one  inch  from  the  left  end  and  present  it  to  the  cashier  of 
the  bank  with  a  memoranda  of  change  wanted  exactly  like  the 
memoranda  in  the  margin  which  you  will  copy  on  a  blank  ticket. 
Make  no  entry  for  this  transaction.  Why  not?  This  money  is 
for  the  payment  of  freight  and  other  "expense  bills."  Place  it  in 
your  Cash  drawer. 

3.  Pay  your  store  rent  for  one  month  in  advance,  drawing  your  check  in  favor  of  the  College 
Real  Estate  Company,  for  the  amount  indicated  as  the  monthly  rental  in  the  explanatory  part 
of  your  opening  entry,  and  filling  your  check  stub  as  in  the  form  following,  except  that  your 
signature  will  take  the  place  of  T.  H.  E.  Student. 

1.  Approval.  All  papers  of  any  kind  prepared  by  the  student  to  be  used  in  any  way  in  the  commercial 
room  must  bear  the  teacher's  "vise"  or  stamp  of  approval  before  being  circulated.  No  unstamped  paper  will 
be  held  valid.  This  is  essential  to  enable  the  teacher  to  see  all  papers  that  are  made  out  that  he  may  guide 
the  student  in  matters  of  form  and  neatness. 

2.  No  bank  of  any  standing  will  accept  a  stranger.  He  must  be  vouched  for  as  a  depositor,  by  someone 
known  to  the  bank. 


CHANGE  WANTED 

No.  of 
Pieces 

Denomination 

Amt. 

1 

$100 

100 

00 

5 

50 

250 

00 

12 

2 

24 

00 

10 

1 

10 

00 

9 

25^ 

2  25 

11 

10^ 

1 

iO 

$387 

35 

CAMPBELL'S   ACTUAL   ACCOUNTING 


91 


BALANCE    BROUCm    FORWARD 

Deposited i9 

Ck  No D>'aujn /  9  _. 

In  )jvot  oj 


hr 

Amount  of  Bill,   ory  . 

Payment  to  be  made  ] 


Discount. 


%         I- 


Amount  0/  Check 
Balance 


C!)f  CoIItgr  Banfe 


(-yC--»^  ^^-^/J^^-^-^^f-i-^ii^^- 


v<^eg^   ISollflrg 


3n  eolU0t  Curctncp 


Then  make  entry  as  follows,  omitting  two^  lines  between  the  opening  entry  and  this.  (See 
footnote.) 


~^^i>i^  ^.yLe<yx^^^.^^<liii>-Le^ 


z^^  — 


/^d  - 


(a)  Take  a  receipt  for  your  payment  of  rent.  When  payment  of  any  bill  is  made  by  a 
check,  a  receipt  is  usually  considered  unnecessary  as  the  check  when  returned  after  payment 
by  the  bank  is  itself  a  voucher.  In  the  case  of  rent,  however,  it  is  well  to  form  the  habit  of 
taking  a  receipt  since  the  failure  to  do  so  in  a  single  instance  in  which  the  payment  may  be  made 
in  money  might  cost  you  an  extra  month's  rent.  If  your  teacher  acts  for  the  Real  Estate  Com- 
pany in  receiving  payment  for  rent,  prepare  a  receipt  for  his  signature,  taking  the  blank  from  the 
back  of  your  receipt  blanks.  This  is  to  save  the  teacher's  time.  If  the  payment  be  made  to  a 
Real  Estate  Office,  the  student  in  charge  of  the  office  will  write  out  the  receipt.  In  preparing  a 
receipt  for  your  teacher  to  sign,  you  do  not  fill  the  stub.  Why?  Why  take  the  blank  from  the 
back  of  your  receipt  blanks?    If  you  cannot  answer  these  questions  consult  your  teacher. 

4.  Orders  from  Wholesale  Houses  and  Manufacturers. — Your  next  act  of  a  business  nature 
will  be  to  place  three  orders  for  merchandise,  one  with  the  Quaker  Oats  Company  one  with 
the  Van  Camp  Packing  Company,  and  the  third  with  the  American  Biscuit  Company.  All  of 
these  companies,  and  others  with  which  you  will  have  business  relations  later,  have  a  number  of 
offices  over  the  country.  You  will  order  from  the  point  nearest  you,  which  for  college  purposes 
is  known  as  College  Center,  just  as  your  own  place  is  called  College  City. 

(a)  In  preparing  these  orders,  refer  to  your  confidential  price  list,  addressing  each  order 
as  directed  therein  and  ordering  from  one  to  five  times  the  number  of  packages  indicated  as  the 
selling  lot,  EXCEPT  that  the  total  quantity  ordered  must  not  exceed  the  number  of  packages 
indicated  as  the  limit^  in  the  respective  price  lists. 

(b)  While  you  will,  hereafter,  be  left  to  your  own  will  as  to  what  to  order,  with  only  the 
above  restrictions,  in  these  first  orders,  for  the  purpose  of  illustration,  both  in  the  matter  of  pre- 
paring orders,  and  in  the  method  of  proving  accuracy,  the  items  will  be  definitely  specified.  You 


1.  Omitting  two  lines  between  entries  is  considered  the  quickest,  neatest,  and  most  business-like  separa- 
tion. "When  the  date  changes,  the  figure  of  the  new  day  is  written  in  the  center  of  the  second  of  these  lines. 
While  the  date  remains  the  same,  these  lines  are  left  entirely  blank.  The  full  instructions  given  for  this  entry 
in  3  above  is  not  needed  by  the  student  who  has  faithfully  worked  the  preceding  eighty-nine  sections  of  intro- 
ductory practice,  but  will  doubtless  be  of  advantage  to  students  who  may  be  changing  from  other  texts  to  this 
one  at  this  point. 

2.  Limit.    A  school  regulation.    There  is  ordinarily  no  limit  to  the  size  of  an  order  in  business. 


92 


CAMPBELL'S   ACTUAL  ACCOUNTING 


will,   therefore,  make  out  orders   as  follows,  the   duplicate   order   sheets    in   your    Order    Book 
enabling  you  to  preserve  a  copy  of  your  order. 

Order  No.^^^: College  r;«^  Jt>^»i^^^  10 

Ordered  of     ^^^^^^.c^^^^^  (9^^j?^  y^^ 


By — (Your  name  herel 


^      ^      rv  Street  AdHr^«.     ^<^^ ^  ^^^^.^^^^^^ ^ y  z:^^. 

Terms  C:.^^^  J^^;^ /^.  ^^dA  Shinvu,     i^-^yP ^ 


2^^t^^,^^ .. — -^^^.^■..^.  yc^A^^^ji^y^.^ 


//y 


^.^^  Xl^.^^^^^^  ^^^^J^  <^^r  ^ 


zz:: 


.^^ 


Note.  Observe  that  the  first  item  of  the  order  is  for  five  times  the  selling  lot,  the  second  for  four  times 
the  selling  lot,  the  third  for  three  times,  and  the  fourth  again  for  five  times,  making  a  total  order  of  forty-seven 
packages,  which  is  well  within  the  "limit,"  which  in  this  case  is  fifty-eight  packages. 

Fill  out  order  blanks  similar  to  the  preceding  for  each  of  the  following  lists  of  merchan- 
dise: 

Order  No.  2.  From  the  Van  Camp  Packing  Company, — 15  cases  No.  2  Pork  and  Beans,  T. 
S.,  40  cases  Assorted  Soups,  100  cases  Bordeau  Catsup,  60  cases  No.  3  Extra  Tomatoes ;  100  cases 
Family  Size  Milk. 

Order  No.  3.  From  the  American  Biscuit  Company, — 20  bxs.  A.  B.  C.  Soda  Crackers ;  20 
bxs.  A.  B.  C.  Oyster  Crackers;  30  cartons  Nobetter  Biscuits;  30  cartons  Ambis  Sugar  Wafers. 

(c)  Correspondence^.  .With  each  of  these  orders,  you  will  write  a  neat,  carefully  prepared 
letter,  in  which  you  will  state  that,  being  about  to  engage  in  business  for  yourself  in  College 
City,  you  are  referred  to  them  by  C.  W.  Burke  of  the  same  place,  by  whom  you  have  been  for 
merly  employed  and  to  whom  you  are  pleased  to  refer  for  your  financial  integrity.  See  letter  in 
60  (b)  also  footnote  2.  State  that  you  wish  to  buy  goods  from  them  on  60^  days,  with  the  usual 
cash  discounts  for  earlier  payment,  and  that,  confident  that  your  reliability  will  bear  investigation, 
you  are  enclosing  an  order  for  merchandise,  which  you  hope  they  will  be  able  to  ship  you  at  an 
early  date.  Work  this  letter  out  first  on  scratch  paper,  then  copy  it  neatly  on  your  correspond- 
ence paper,  making  a  duplicate  copy  for  your  teacher's  files. 

(d)  As  soon  as  you  have  one  of  these  letters  ready  for  mailing,  infold  with  it  your  order 
ready  to  be  placed  in  the  envelope,  and  submit  both  to  your  teacher,  with  an  addressed  envelope 
to  be  vised^.  Then  forward  it  to  the  company's  address  at  College  Center  in  order  that  these 
goods  may  be  coming  while  you  are  preparing  the  other  orders. 

1.  Correspondence.  The  student  cannot  be  too  careful  in  the  preparation  of  these  business  letters.  The 
actual  business  transacted  invests  the  letter  with  a  reality  that  the  prescribed  letters  of  a  text  on  correspond- 
ence can  only  imitate,  and  the  student  has,  in  the  writing  of  these  letters,  an  opportunity  for  practice  that  is 
invaluable. 

2.  In  counting  time  in  the  school  room,  except  in  settling  accounts  with  the  T.  &  T.  Co.,  divide  the  quoted 
time  by  10  to  find  the  real  time.  Thus  thirty  days  signifies  three  days;  sixty  days,  6  days,  etc.;  but  after  the 
maturity  of  a  note  or  invoice  the  time  that  elapses  when  payment  is  delayed  should  be  counted  naturally  and 
not  multiplied  by  10.  In  settling  accounts  with  the  T.  &  T.  Co.,  natural  time  will  be  calculated,  except  in  calculat- 
ing the  maturity  of  notes  and  acceptances  which  will  follow  the  rule. 

3.  Vised  means  seen.  When  used  as  the  word  on  a  teacher's  stamp  of  approval,,  it  signifies  merely 
that  he  has  seen  the  paper  and  permitted  it  to  be  used  in  the  commercial  room  by  the  student  who  prepared 
it,  subject  to  any  restrictions  or  criticisms  that  he  may  have  made  orally.  It  does  not  authorize  any  other 
student  to  copy  it  as  a  correct  form. 


CAMPBELL'S   ACTUAL   ACCOUNTING 


93 


In  writing  the  other  two  letters,  vary  the  style  and  wording  as  much  as  you  can  without 
making  any  material  difference  in  the  contents  of  the  three  letters.  Try  to  say  the  same  thing  in 
different  words.  All  of  your  first  letters  to  business  firms  ordering  goods  and  asking  for  credit 
will  be  similar  to  the  one  outlined  in  (c)  above,  but  they  should  not  be  copies  of  each  other.  Make 
each  as  much  better  than  the  preceding  as  you  can,  remembering  that  it  is  not  getting  over  the 
ground,  but  doing  well  everything  that  you  do  that  will  qualify  you  for  a  future  position.  When 
these  other  letters  are  prepared,  submit  them  also,  with  their  infolded  orders,  to  your  teacher  to 
be  vised.  Prepare  also  a  duplicate  copy  for  the  teacher's  files.  If  you  use  a  typewriter,  a  carbon 
copy  is  the  correct  thing,  otherwise  a  neatly  written  copy  is  the  best.  Your  teacher  will  then 
have  it  at  hand  for  criticising  and  marking,  and  will  keep  it  as  a  part  of  Your  Exhibit  of  work 
done.  Let  it  be  well  done.  If  any  of  your  goods  have  arrived,  you  will  now  proceed  as  in  5, 
below.  If  goods  have  not  yet  arrived,  the  greater  part  of  the  work  of  6  can  be  done  while  they 
are  coming. 

5.  When  Goods  Arrive,  whether  ordered  by  you  or  by  your  purchasing  agent,  as  explained 
in  go,  3,  Introductory  Information, — 

First,  Compare  the  Quantities  listed  on  the  invoice  with  the  tickets  representing  the  goods 
and  see  that  you  have  received  the  goods  as  billed,  checking  each  item  in  the  left  hand  margin 
and  affixing  "O.  K."  and  your  initials  as  done  by  D.  A.  C.  in  the  left  hand  margin  of  the  invoice  in 
57.  This  should  be  done  as  soon  as  the  goods  arrive  in  order  that  claims  for  loss  or  damage  may 
be  made  at  once.     In  this  you  are  doing  the  work  of  a  receiving  clerk. 

Second,  Compare  the  Prices  and  discounts  of  the  invoice  with  those  quoted  in  your  confiden- 
tial price  list  and  if  you  find  them  correct,  check  and  "O.  K."  them  also,  as  illustrated  in  the 
invoice  in  57.  This  is  the  work  of  that  member  of  the  firm  or  that  clerk  who  knows  the  prices  and 
terms  on  which  the  goods  were  bought,  and  is  to  be  attended  to  as  soon  as  the  invoices  are 
received. 

Third,  As  soon  as  the  first  and  second  instructions  above  are  complied  with,  detach  all 
tickets  representing  goods  bought  from  the  wholesale  houses  and  manufacturers,  from  their 
respective  invoices,  and  place  them  in  the  envelope  marked  Department  A  or  Wholesale  Stock. 
Likewise  detach  tickets  representing  goods  bought  from  students  from  their  respective  in- 
voices, and  place  them  in  the  envelope  marked  Department  E. 

Fourth,  Go  carefully  over  all  computations,  the  extensions,  the  additions,  the  discounting  and 
the  subtracting  of  the  discounts,  and  again  place  your  "O.  K."  as  done  by  T.  E.  C,  in  the  money 
columns  of  the  invoice  in  57. 

Fifth,  Make  entry  for  all  invoices  bought  similar  to  the  following,  which  is  the  correct  entry 
for  the  purchase  from  the  Quaker  Oats  Company,  omitting  two  lines  between  the  last  entry 
(made  for  the  payment  of  rent)  and  this  entry  and  two  lines  between  all  succeeding  entries. 


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When  the  entries  are  completed,  make  the  proper  memoranda  in  the  stamped  form  on  the 
upper  right  hand  corner  of  each  invoice  as  instructed  in  15  and  file  alphabetically  in  the  In- 
voice compartment  of  your  filing  case.  The  proper  memoranda  to  be  placed  on  each  invoice  is 
the  date,  the  book  and  page  of  entry,  and  the  filing  letter  and  number  of  the  invoice.  The  form 
in  which  this  is  placed  is  printed  on  the  invoice  as  a  matter  of  school  convenience;  in  business  a 
rubber  stamp  is  used  and  is  sometimes  placed  on  the  back  of  the  bill,  or  on  a  corner  turned  over 
for  the  purpose. 

Sixth,    Pay  in  currency  at  the  general  offices  of  the  Transfer  Company,  or  at  the  teacher's 
desk  if  so  instructed,  the  bills  for  freight  presented  when  your  goods   are  delivered,  numbering 


94 


CAMPBELL'S   ACTUAL   ACCOUNTING 


these  in  order  as,  Expense  Bill  No.  i,  Expense  Bill  No.  2.,  etc.  In  making  entry  for  these 
freight  payments,  use  the  phrase,  Expense  Bill  No,  —  as  the  explanation  of  the  entry  and  carry 
the  explanation  to  the  ledger  when  posting. 

Seventh,  Observe  that  you  are  getting  a  much  wider  range  of  business  instruction  than 
merely  a  study  of  bookkeeping,  and  go  very  carefully  through  all  the  details  suggested  above. 
Since  all  errors  and  mistakes  that  you  make  in  your  work,  or  overlook  in  invoices  received  from 
others,  will  appear  in  your  proof  at  the  end  of  this  outline,  and  will  prevent  your  going  ahead 
until  they  are  all  corrected,  careful  work  now  will  save  you  hours  and  even  days  of  time  spent 
in  finding  and  correcting  errors. 

6.  Securing  Orders  From  Students.  While  you  will  not  hereafter  be  controlled  in  the 
matter  of  your  sales  any  more  than  in  the  ordering  of  goods,  it  will  be  most  convenient  that  your 
first  sales  be  exactly  specified.  You  will  therefore  sell  to  six  students  who  will  be  designated 
by  your  teacher,  the  following  bills  of  goods,  first  copying  them  on  your  small  order  blanks  as 
illustrated  in  the  form  following.  Fill  out  all  the  order  blanks  completely  as  to  the  items  before 
going  to  your  teacher  for  the  names  of  the  purchasers,  but  make  no  extensions  until  after  your 
teacher  has  approved  the  orders.    See  (a)  below. 

In  the  same  manner  as  No.  i  is  filled  out,  fill 
out  blanks   for  the   following  lists   of   goods : 

Order  No.  2,  6  cases  Quaker  Whole  Wheat 
Flour;  10  cases  Pork  and  Beans  No.  2;  5  boxes 
A.  B.  C.  Soda  Crackers. 

Order  No.  3,  10  cartons  Nobetter  Biscuits ; 
20  cases  Vegetable  Soup ;  5  cases  Pork  and  Beans 
No.  2;  6  cases  Quaker  Pufifed  Wheat. 

Order  No.  4,  2  barrels  Quaker  Patent  Flour;  6 
cases  Quaker  Whole  Wheat  Flour;  40  cases 
Bordeau  Catsup  No.  10;  10  cartons  Ambis 
Sugar  Wafers. 


ORDER  BLANK 

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Order  No.  5^  8  bxs.  A.  B.  C.  Oyster  Crackers;  10  cartons  Nobetter  Biscuits;  30  cases  Extra 
Tomatoes. 

Order  No.  6,  10  cartons  Ambis  Sugar  Wafers;  2  barrels  Quaker  Patent  Flour;  50  cases 
Milk,  Family  Size;  20  cases  Extra  Tomatoes. 

(a)  When  your  teacher  has  completed  the  above  orders  by  accepting  the  goods  as  Pur- 
chasing Agent  for  certain  students  whose  names  he  will  give  you,  you  will  proceed  to  fill  in 
the  prices  as  indicated  on  each  ticket  and  to  compute  and  make  the  extensions,  discounting  the 
entire  bill  3%  as  a  trade  discount.  You  should  be  able  to  make  these  computations  accurately 
without  the  use  of  scratch  paper,  and  as  these  order  slips  can  be  easily  replaced  if  spoiled,  this 
is  a  good  opportunity  for  practice  in  ofifhand  addition,  such  as  you  will  be  expected  to  do  accu- 
rately and  neatly,  and  rapidly  if  you  should  go  into  a  position  as  a  bill  clerk. 

(b)  When  the  orders  are  thus  completely  filled  out,  proceed  to  make  out  your  bills,  follow- 
ing carefully  the  form  of  invoice  on  the  opposite  page,  which  is  the  bill  for  Order  No.  i  com- 
plete except  for  the  names  of  the  parties.  Substitute  your  own  name  for  that  of  the  proprietor, 
and  the  name  of  the  purchaser  for  that  of  H.  P.  Lemler. 

When  all  bills  are  made  out,  turn  to  your  journal,  and,  omitting  two  lines  from  the  last 
entry,  make  entry  for  the  first  sale  exactly  as  shown  in  the  entry  presented  below  the  invoice  on 
the  opposite  page,  except  that  you  will  write  the  name  of  the  purchaser  in  the  place  of  that  of 
H.  P.  Lemler. 


CAMPBELL'S   ACTUAL  ACCOUNTING 


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(c)  Now  submit  the  entry  you  have  just  made  to  your  teacher  for  approval  with  all  the 
bills  that  you  have  made  out,  to  be  "vised."  When  these  are  approved  proceed  to  make  entry  for 
the  remaining  bills  in  the  same  manner  as  for  the  first,  omitting  two  lines  between  entries,  and 
when  this  work  is  completed  take  the  tickets  representing  the  goods  you  have  just  billed,  from 
the  evelope  marked  "Wholesale  Stock"  and  attach  them  to  the  respective  invoices  with  a  pin  or 
patent  fastener  (not  with  paste)  that  they  may  not  be  easily  lost,  and  deliver  the  bills  with  the 
goods  to  each  customer.  In  doing  this,  do  not  stop  for  explanation  or  other  conversation  (unless 
the  customer  asks  to  see  your  order)  but  place  the  bill  and  goods  on  his  desk  and  return  to  your 
own  work.  Anything  that  the  purchaser  needs  to  know  he  can  learn  best  from  the  teacher.  If 
he  is  already  overloaded  with  goods  it  is  a  situation  that  he  should  report  to  the  teacher,  not  to 
you. 

(d)  File  away  your  order  slips  in  the  file  marked  "Sales  Tickets,"  as  they  may  be  needed  for 
reference.  Later  in  your  work,  methods  of  using  them  as  a  part  of  the  original  entry,  or 
record,  will  be  introduced.  At  present  they  are  used  as  voucher  evidence  of  your  authority  to  sell, 
the  entire  record  being  made  in  the  journal  just  as  if  these  orders  did  not  exist. 


96  CAMPBELL'S   ACTUAL   ACCOUNTING 

7.  Purchases  from  Students.  As  stated  in  Introductory  Information  under  90,  you  will  from 
time  to  time  receive  goods  from  other  students,  ordered  for  you  by  your  purchasing  agent.  When 
such  bills  are  received,  turn  back  to  91,  5,  for  instructions  as  to  checking  and  entering,  and  be 
careful  to  place  the  tickets  representing  these  goods  in  the  envelope  marked  Department  E.  As 
these  goods  are  bought  at  the  prices  current  for  sales  to  students,  they  cannot  be  resold  to 
students  at  a  profit,  hence  they  are  kept  separate  from  your  wholesale  stock  to  be  sold  later  to 
the  Townsite  &  Trading  Company  (T.  &.  T.  Co.)  which,  as  the  owner  of  the  College  City 
townsite,  has,  with  an  enterprise  common  in  the  developing  of  new  towns,  opened  a  market  for 
this  class  of  goods  on  terms  stated  below. 

8.  Terms  of  Sales  to  the  Townsite  &  Trading  Co.  This  company  will  buy  goods  from  stu- 
dents at  the  list  prices  of  the  wholesaling  companies,  on  four  months'  time,  subject  to  the  seller's 
draft  at  any  time  for  amounts  not  aggregating  more  than  95%  of  the  total  sales;  and  will  settle  in 
full  at  any  time  when  the  seller  is  instructed  to  secure  settlement,  a  cash  balance  being  found  by 
equating  the  accounts  on  the  basis  of  the  current  rate  of  interest,  not,  however,  exceeding  8% ; 
or  this  company  will  at  the  time  of  sale  pay  cash  less  21/2%  discount  from  list  price. 

9.  Payment  for  Goods.  From  day  to  day  you  will  have  special  instructions  as  to  the  man- 
ner of  making  payment  for  goods.    Much  will  depend  on  the  terms  quoted  by  the  seller. 

(a)  For  the  goods  which  you  have  ordered  from  the  wholesale  houses,  you  will  pay  cash 
less  the  discount  to  which  you  are  entitled  by  the  terms  of  the  invoices.  Write  a  letter  to  each 
of  these  houses,  enclosing  your  check  for  the  amount  due  according  to  the  above  instructions, 
and  a  second  order  for  merchandise^  your  own  selection,  limited  only  by  the  instructions  in  gi, 
4,  (a)  and  your  special  price  list.  Express  in  this  letter  your  appreciation  of  their  promptness  in 
accepting  and  filling  your  former  order.  Make  entries  as  instructed  in  Fifth  under  5.  Present  all 
work  to  be  vised  handing  your  teacher  neat  copies  of  all  letters. 

(b)  For  goods  bought  from  students  through  your  purchasing  agent,  make  payment  as  fol- 
lows :  If  notes  or  drafts  accompany  any  of  the  invoices,  sign  the  notes  and  accept  the  drafts  (if 
correct  in  amount  and  form)  make  the  proper  record  in  your  bill  book,  consulting  67  and  68,  and 
make  entry  in  your  journal  as  instructed  in  57.  If  the  option  of  paying  by  either  cash  or  note  is 
allowed  you,  draw  checks,  less  2%,  for  a  part  of  the  bills  (not  more  than  half  of  them),  and  give 
a  note,  less  1%,  for  each  of  the  others.  Enter  cash  payment  as  in  21.  Payment  by  notes  will 
have  a  very  similar  entry,  except  that  you  will  credit  Bills  Payable  instead  of  Cash.  See  instruc- 
tions and  information  in  20,  (a).  Show  your  entries  for  these  payments  to  your  teacher,  when 
you  present  your  checks,  notes,  and  other  papers  to  be  vised,  and  complete  the  payment  of  bills 
bought  from  students  by  delivering  the  checks  or  notes  to  the  students  at  their  respective  desks 
without  writing  a  letter.  It  is  considered  that  the  wholesale  work  will  furnish  sufficient  practice 
in  correspondence. 

10.  When  You  Receive  Payment  for  your  sales,  see  that  the  amount  is  correct  (after 
deducting  the  discount),  and  make  entry  for  each  payment  separately,  consulting  24,  51  and  58,  for 
form  of  entries.  Place  the  cash,  notes  or  acceptances  received  in  the  proper  compartments  of 
your  filing  case,  and  make  the  proper  record  in  the  bill  book  for  all  notes  or  acceptances. 

11.  You  are  now  ready  to  post  and  make  what  we  call  the  daily  closing. 

(a)  Do  Not  Expect  Business  to  Stop  because  you  are  closing  your  books.  In  general,  if 
invoices  come  in  while  you  are  closing,  check  them  as  instructed  in  91,  5  under  first,  second,  and 
third,  and  place  the  bills  in  a  clip,  or  in  the  back  of  your  filing  case  for  future  entry,  If  drafts  are 
presented  for  acceptance,  or  statements,  notes,  or  acceptances  for  payment,  see  that  the  amount 
is  correct,  then  make  the  proper  record  in  your  bill  book,  and,  if  it  be  necessary  to  make  pay- 
ment to  accommodate  the  selling  student  draw  your  check  for  the  amount,  carefully  explaining 


1.  If  this  order  is  filled  and  you  receive  the  merchandise  before  you  have  completed  your  work  and  had 
it  accepted  up  to  and  including  the  report  on  page  110,  file  invoices  as  instructed  in  11  (a)  following  and 
make  no  entry  until  your  books  are  accepted. 


CAMPBELL'S   ACTUAL   ACCOUNTING  97 

the  check  stub.  In  the  first  cases  of  this  kind  that  occur,  consult  your  teacher  to  make  sure  that 
you  have  the  proper  memoranda  to  enable  you  to  make  entry  when  you  are  ready  to  do  so. 

Frequently  it  is  convenient  to  continue  making  the  journal  entries  while  closing,  but  not 
posting  these  new  entries  until  the  next  daily  closing.  Consult  your  teacher  on  this  point,  but 
do  not  refuse  to  do  necessary  business  because  you  are  closing  your  books.  If  your  trial  balance 
gives  you  trouble  and  you  are  delayed  until  double  the  usual  amount  of  business  for  a  daily 
closing  has  accumulated,  report  to  your  teacher,  asking  him  as  purchasing  agent  not  to  buy  any 
more  for  you  for  the  present,  and  get  his  advice  as  to  your  trial  balance. 

(b)  Open  your  ledger  accounts  on  the  following  pages  of  your  ledger,  in  your  best  style  of 
penmanship,  and  prepare  your  index  to  correspond:  (For  a  guide  consult  C.  W.  Burke's 
ledger,  prepared  in  your  former  business.) 

Page  I,    (Your name) .Proprietor;  page  4,  Cash;  page  6,  Merchandise;  page  10 

Merchandise  Discounts;  page  12,  Expense;  page  13,  Loss  and  Gain;  page  15,  Freight;  page  16, 
Cartage;  page  17,  Furniture;  page  18,  Chattels;  page  19,  Collections  and  Exchange;  page  20, 
Interest  and  Discounts;  page  28,  Bills  Receivable;  page  29,  Bills  Payable;  and  for  your  cus- 
tomers (those  to  whom  you  sell),  open  accounts  on  the  half  pages  in  that  part  of  the  book 
designated  as  Customers'  Ledger;  while  for  your  creditors  (those  from  whom  you  buy),  you  will 
open  accounts  on  the  half  pages  in  that  part  of  the  book  designated  as  Creditors'  Ledger,  giving 
each  account  one  half  of  page.  Your  ledger  being  loose-leaf  you  will  number  the  pages  of 
the  general  ledger  only.  In  the  customers'  and  creditors'  ledgers  you  will  arrange  the  accounts 
alphabetically  paging  separately  under  each  letter  as,  A-i,  A-2,  B-i,  B-2,  etc. 

(c)  Post,  following  the  method  explained  in  28  to  45.  Index  your  ledger  as  soon  as  opened. 
See  Index  of  C.  W.  Burke's  ledger. 

(d)  Prove  Cash,  as  illustrated  in  66  (a),  (b)  and  (c). 

(e)  Prepare  your  deposit  ticket  as  in  18  copying  it  on  your  check  book  stub  as  instructed 
in  gi,  2. 

(f)  Endorse  your  checks,  as  you  did  the  draft  in  gi,  2,  and  present  pass  book  with  deposit 
ticket  and  checks  to  teacher  to  be  "vised"  before  going  to  the  bank. 

(g)  Prove  Bills  Receivable  and  Bills  Payable,  as  instructed  in  6g. 

(h)  Take  a  trial  balance  as  instructed  in  70  and  when  balance  is  found,  record  in  trial  bal- 
ance book  with  the  amounts  in  the  first  pair  of  double  columns  (see  78,  a),  writing  the  date 
where  the  words,  Trial  Balance,  appear  in  78  (a),  and  entering  beneath  on  consecutive  lines, 
the  names  of  the  accounts  with  the  ledger  pages  from  which  they  are  taken,  as  well  as  the  debit 
and  credit  of  each  account.  Always  re-add  the  trial  balance  after  copying  it,  and  write  the  foot- 
ings between  the  red  lines  at  the  foot  of  the  trial  balance  page.  Never  copy  your  footings.  See 
78,  footnote  3.  Be  careful  also  to  observe  instructions  regarding  accounts  that  are  in  balance. 
See  46,  Footnote  2. 

If  your  ledger  does  not  balance,  try  the  ordinary  methods  of  finding  a  trial  balance  in  71. 
If  you  still  cannot  find  your  balance,  work  it  out  as  instructed  in  72,  "To  Find  a  Trial  Balance 
When  Ordinary  Methods  Fail,"  and  carefully  follow  the  instructions  there  given.  It  is  a  some- 
what lengthy  method,  but,  if  followed  carefully,  it  is  certain  to  result  in  a  balance,  and  will  point 
out  the  account  or  accounts  in  your  ledger  in  which  the  errors  exist,  and  even  the  side  of  the 
account  on  which  they  are  to  be  found.  There  is  absolutely  no  reason  that  a  trial  balance  should 
ever  become  a  bugbear  to  anyone,  nor  any  reason  why  you  should  not  find  your  first  (and  every 
other)  trial  balance  without  any  assistance.  To  obtain  assistance  is  to  lose  the  very  thing  you 
attend  college  to  gain. 

g2.  To  Find  a  Trial  Balance  When  Ordinary  Methods  Fail.  As  a  second  aid  to  the  student 
in  mastering  a  method  of  work  that  is  of  great  importance  to  him  both  as  a  plan  for  overcoming 
difficulties  in  school  and  as  a  training  in  avoiding  them  in  future  work,  the  lesson  presented  in 


98 


CAMPBELL'S   ACTUAL   ACCOUNTING 


72  is  repeated,  being  specifically  applied  to  the  prescribed  work  of  91.    By  a  comparison  of  the 
two  sections  the  student  should  not  fail  to  thoroughly  master  this  subject. 

(a)  Take  a  sheet  of  trial  balance  paper  from  your  trial  balance  tablet  and  copy  from  your 
ledger  all  items  posted  therein  arranging  the  debits  in  a  column  or  columns  on  the  left  hand  of 
the  page,  and  the  credits  in  a  column  or  columns  on  the  right  as  the  specified  items  of  your  first 
day's  work  are  arranged  below.  In  taking  these  numbers  for  the  purpose  of  illustration,  we 
have  supposed  some  probable  errors.  If  you  are  proving  another  day's  work,  your  figures  will 
be  entirely  different.  If  you  are  proving  the  first  day's  work  but  have  bought  goods  from  stu- 
dents, or  paid  bills  not  distinctly  specified,  or  received  money  for  any  of  your  sales  you  will  have 
additional  items  in  some  of  these  accounts  and  possibly  some  new  accounts.  Otherwise  your 
"Checking  Page"  when  first  copied,  will   appear,  as  below,  except  that  the  figures  may  difTer.^ 


Lodc«r  Debits 


Cash 
15000  QO 

Customer  2 
$   64  08 

Customer  6 
$  207  10 

Mdse. 
149  19 
90  04 

Customer  3 
lOE  73 

QcOsts  Co. 
149  19 

742  00 

Customer  4 
120  28 

An.Bls.Co. 
90  04 

•Expense 

125  00 

Customer  5 
72  83 

Van  camp 

Company 

Customer  1 

742  00 

119  06 

Lodger  Credits 


Q.Oats  Co> 
t   149  19 

An.Bls.Co* 
90  04 


Tan  Camp  ~ 
Company 
742  00 


Udse. 

$  119  06 

64  60 

105  73 

120  26 

78  23 

207  10 


Udse.Sis 

2  98 

160  00 

14  64 

Proprietor 
^5000  00 

Cash 

125  00 

146  21 

88  24 

727  16 


(b)  When  all  items  are  copied  as  above  and  space  left  beneath  each  separate  account  for 
adding  (we  are  not  ready  to  add  yet),  proceed  to  check  the  debits  and  credits  as  below,  number- 
ing the  debits  consecutively  in  red  ink  (marking  with  an  x  any  that  you  cannot  match  with 
a  credit)  and  numbering  the  credits  that  correspond  exactly  to  the  respective  debits  with  the 
same  checking  number,  in  red  ink.  When  this  is  done  the  page  will  appear  as  in  B,  and  the 
x's  on  the  left  hand  and  the  unchecked  numbers  on  the  right  will  include  all  the  mistakes  and 
sometimes,  as  you  learned  in  72,  combinations  that  are  not  mistakes,  but  cannot  be  certainly 
checked  without  reference  to  the  journal. 

(c)  Having  gone  over  the  checking  page  as  above,  we  find  several  numbers  that  do  not 
check  as  indicated  by  the  x's  on  the  left  hand  and  the  unchecked  numbers  on  the  right.  Taking 
up  the  first  x  on  the  left.  No.  7,  in  the  account  of  your  second  customer,  you  will  turn  first  to 
the  ledger  to  see  that  the  error  is  not  merely  in  copying,  then  following  it  to  the  journal  by  the 
reference  number,  you  will  learn  that  the  correct  figures  are  64.08,  the  cents  figures  being 
reversed  in  posting  to  the  Merchandise  account  where  it  appears  as  64.80.  Correct  the  error, 
first  in  the  Merchandise  account  in  the  ledger,  then  on  the  checking  page  and  observe  that 
now  this  number  checks  off  with  64.08  in  the  Mdse.  credit.     Cancel  the  x  thus,  /,  and  number 


1.  For  the  purposes  of  this  proof  it  is  immaterial  whether  the  student  has  the  same  figures  in  each  account 
as  above  or  not.  Except  that  it  will  be  easier  to  follow  the  plan  of  proof  through  the  explanation  following  in 
each  plate,  the  student  will  get  a  better  practice  if  his  work  should  be  altogether  different,  or  if  he  will 
prove  his  trial  balance  from  the  instructions  given  in  72  and  without  consulting  92. 


CAMPBELL'S   ACTUAL   ACCOUNTING 


99 


B 


Ledger  Doblta 

Ledger  Credits 

Cash 

1   15000  00 

CuBtoraer  2 
x7  S   64  08 

Customer  6 
11  Z   207  10 

Q.Oats  Co. 
2«  149  19 

Udse. 

6  $   119  06 

64  80 

S   105  73 

9   120  28 

78  23 

aj   207  10 

Proprietor 
]  ^5000  00 

Udse. 

2  149  19 

3  90  04 

customer  3 
«   105  73 

<l.Oats  Co. 
X.12   149  19 

Am. Bis. CO. 
5    90  04, 

Cash 
5   125  00 
146  21 

If  ;742  OO 

Customer  4 
9   120  28 

Am. bis. CO. 
xj^i    90  04 

Van  Camp 
Company 
^        742  00 

88  24 

727  16 

expense 

Udse. Sis. 

2  98 

180  00 

14  84 

S   125  00 

Customer  5 
iTin    72  83 

van  6arap 
Company 
^^  u       742  00 

Customer  1 

^   119  06 

the  credit  in  Mdse.,  /,  in  red  ink.  The  next  x  is  in  the  account  of  the  fifth  customer,  72.83. 
Tracing  it  in  the  same  manner  you  find  that  the  corresponding  credit  is  in  Merchandise  and  has 
been  posted  78.23.  Correct  this  error  in  ledger  and  on  checking  page,  cancel  the  x,  number  the 
credit,  and  take  up  the  item  in  the  account  of  the  Quaker  Oats  Co.  Referring  to  the  journal,  we 
learn  that  this  debit  is  matched  by  two  credits,  146.21  in  Cash  and  2.98  in  Mdse.  Disc'ts,  hence, 
this  is  not  an  error.  Cancel  the  x  and  place  the  red  number  12  as  a  check  mark  to  both  of  the 
credit  numbers.  The  next  x  is  in  the  account  of  the  American  Biscuit  Co.  Supposing  the  same 
condition  to  exist  as  in  the  preceding  case ;  you  will  naturally  attempt  to  match  it  by  combining 
one  of  the  unchecked  cash  items  with  an  unchecked  item  in  Mdse.  Discts.,  and  not  being  able  to 
find  a  combination,  you  will  again  refer  to  the  journal  and  will  learn  that  Mdse.  Discts.,  1.80  has 
been  posted,  180. — .  Correcting  this  error  in  the  ledger  and  on  the  checking  page,  you  will 
observe  that  the  remaining  x  on  the  debit  is  now  exactly  matched  by  the  two  remaining  un- 
checked credits,  and  the  checking  page  now  shows  a  perfect  condition  of  the  ledger,  and  appears 
as  in  form  C,  except  the  red  ink  footings. 


Ledger  Debits 


Cash 

1  $6000  00 

snoo  no 
Udse. 

2  149  19 

3  90  04 
H    742  00 

Szpense 
5   12s  00 

1  2^)    00 

Customer  1 
^    119  06 


Customer  2 
7  $   64  08 

6U  OS 

Customer  3 
g    105  73 

-  ^0^  U 
Customer  4 
9  120  28 
120  2S 
Customer  5 
10     72  88 


Customer  6 

11  t   207  10 

207  10 
Q.Oats  Co. 

12  149  19 
1  "49  19 

Am. Bis. Co. 
i 3     90  04 

90  pit 

?an  Oamp 
Company 
m   742  00 
7^2  00 


Ledger  Cradite 


Q.Oats  Co. 
2  t    149  19 

1U9  19 

Am.Bis..Co. 
?     90  04 

90  OH 
Tan  Camp 
Company 
H        742  00 

7^2  00 


Udse. 

6^   119  06 

64  08 

105  73 

120  28 

72  83 

207  10 


689 

02 

Mdse.Dls. 

12 

2 

98 

13 

1 

80 

1^ 

14 

84 

1  9 

62 

Proprietor 
L  <S0O0  00 

Cash 

125  00 

146  21 

86  24 

727  16 


5 
12 
1  5 


10g6  61 


lOo  CAMPBELL'S   ACTUAL   ACCOUNTING 

You  should  now  have  no  trouble  in  finding  your  trial  balance  directly  from  your  ledger,  and 
should  take  it  off,  carefully  reviewing  all  additions  as  you  do  so.  If  it  does  not  balance,  however, 
then  add  your  accounts  as  they  now  stand  on  your  checking  page,  entering  the  footings  in  red 
ink,  and  as  you  have  proved  by  checking  that  you  have  the  same  numbers  on  both  debit  and 
credit  sides,  you  must  feel  that  any  failure  to  secure  a  balance  from  this  page  is  due  to  inaccuracy 
in  addition  which  you  must  overcome  if  you  would  ever  become  an  accountant, 

(d)  If  you  are  working  on  some  other  trial  balance  than  the  first  one  in  your  actual  busi- 
ness work,  and  it  does  not  come  when  the  checking  is  completed  and  you  have  carefully  taken  it 
again  off  the  ledger  as  instructed  in  the  latter  part  of  (c)  above,  then  take  a  balance  of  the  red 
ink  footings  above  and  write  it  (in  red  ink)  into  the  last  preceding  trial  balance  as  in  72  (d). 
After  proving  that  it  is  correctly  copied  by  adding  it  (also  in  red  ink)  after  copying,  (see  78, 
Footnote  3),  add  together  items  that  come  together  (in  the  same  account  and  on  the  same 
side  of  it)  and  extend  the  results  into  a  second  pair  of  columns,  extending  likewise  the  items  that 
appear  alone  either  in  the  old  trial  balance  or  in  the  balance  of  the  new  work,  and  the  result  (if 
the  work  is  correctly  performed)  will  be  a  complete  key,  to  the  present  condition  of  your  ledger 
as  it  should  stand.  By  comparing  it  with  the  balance  taken  directly  from  the  ledger  you  will  learn 
the  account  and  the  side  of  the  account  on  which  each  mistake  is  to  be  found.  Observe  that  if 
you  have  difficulty  in  adding  together  these  two  balances  and  securing  a  result  that  will  balance, 
you  can  help  to  discover  your  mistake  by  adding  together  the  footings  of  the  two  balances 
and  thus  finding  out  what  the  footing  of  the  new  balance  should  be.  Observe  further,  in  com- 
paring this  "Key  Balance"  with  a  balance  taken  from  the  ledger,  that  an  account  in  the  ledger 
may  differ  in  footings  from  the  key  and  yet  be  correct,  if  the  difference  between  the  footings  of  the 
Key  and  the  difference  between  the  footings  of  the  ledger  are  the  same.  This  will  often  be  the 
case  when  ledger  accounts  have  been  ruled  since  taking  the  last  trial  balance,  or  when  an 
accountant  follows  the  practice  of  omitting  from  the  balance  all  accounts  that  balance  whether 
ruled  or  not.    See  46  footnote  3.    For  the  method  of  making  this  Key  Balance  see  72  (d)  and  (e). 

93.  Preparatory  to  proving  the  accuracy  of  your  merchandise  transactions,  it  will  be  neces- 
sary for  you  to  take  an  inventory  of  all  merchandise  in  stock,  as  was  done  in  C.  W.  Burke's 
business  in  75.  As  you  will  have  but  two  departments,  your  inventory  will  be  simpler  in  form, 
but  very  similar  in  plan.  Prepare  it  very  carefully  on  a  sheet  of  journal  paper,  listing  first  the 
goods  represented  by  the  tickets  found  in  the  envelope  marked,  Wholesale  Stock,  and  discount- 
ing the  total  i2i/^%,  then  listing  whatever  (if  any)  goods  are  to  be  found  in  the  Department  E 
envelope  and  discounting  their  total,  3%.  Adding  the  net  amounts  of  the  two  departments 
completes  the  inventory.  Work  very  carefully  as  any  errors  will  make  you  considerable  extra 
work  before  they  are  found.     When  your  inventory  is  complete,  proceed  with 

94.  The  Expert  Report.  You  are  now  ready  to  figure  out  a  proof  or  expert  report  on  your 
work,  that  will  show  whether  or  not  any  errors  have  been  made  in  your  merchandise  transac- 
tions and  the  net  amount  of  these  errors  in  each  department.  Study  very  carefully  all  the  work 
given  under  this  section  number,  whether  you  "know  your  work  is  right"  or  not.  If  in  transact- 
ing the  business  prescribed  in  91,  you  have  bought  no  goods  from  students,  the  proof  of  your 
merchandise  transactions  at  this  time  will  be  a  very  simple  matter.  Take  a  blank  from  your  ex- 
pert Reports  and 

1.  Enter  on  Line  3,  Total  Cost.  (Mdse.  debit),  the  debit  footing  of  your  Merchandise  ac- 
count. 

2.  On  Line  4,  Present  Inventory,  enter  the  net  amount  of  your  inventory  of  Wholesale 
Stock. 


CAMPBELL'S  ACTUAL   ACCOUNTING 


lOI 


Expert  Report  on  business 


3.  Subtract  Line  4  from  Line  3  and  write 
the  result  on  Line  5,  Cost  of  Goods  Sold. 

4.  Our  work  now  is  to  compute  from  the 
cost  of  goods  sold  to  the  amount  the  sales  should 
come  to,  and  to  facilitate  this  work  for  beginners 
we  have  made  the  trade  discounts  of  all  the 
houses  with  which  the  student  has  been  dealing 
the  same.  In  business  they  would  probably 
differ  and  would  necessitate  a  separate  column  for 
the  goods  of  each  house  as  illustrated  in  76  (a). 
Our  discount  being  uniformly  i2i/2%,  the  Cost  of 
Goods  Sold,  on  Line  5  is  just  7-8  of  what  it 
would  be  at  list  prices,  and  the  discount  which 
was  1-8  of  the  list  price  is  1-7  of  the  number  on 
Line  5  above.  Take  1-7  of  the  Cost  of  Goods 
Sold  and  write  it  beneath,  on  Line  6,  Trade  Dis- 
count. 

5.  Add  the  Trade  Discount  to  the  Cost  of 
Goods  Sold  and  it  gives  Line  7,  Sales  at  List 
Prices.^ 

6.  Compute  the  selling  discount,  3%  of  the 
Sales  at  List  Prices  and  write  it  on  Line  8, 
Selling  Discount. 

7.  Subtract  this  Selling  Discount  from  the 
Sales  at  List  Prices  and  the  result  shows  on 
Line  9  what  the  Sales  Should  Be. 

8.  Turn  to  your  Ledger  and  copy  on  Line  10  the  credit  footing  of  Merchandise,  and  if  the 
amount  agrees  with  the  number  on  Line  9,  your  work  is  correct. 

9.  If  it  does  not  agree  subtracting  as  instructed  for  Line  11  will  show  the  amount  of  error. 

10.  Continue  to  fill  out  all  the  blanks  of  your  report  until  you  have  shown  the  gain  (or 
loss),  verified  the  error  in  sales  if  any  existed,  and  answered  the  percentage  questions  at  the  foot 

of  the  blank. 

95.  The  Report  presented  in  94  illustrated  perfect  work,  exactly  as  prescribed  for  the  stu- 
dent in  91.  In  future  work,  however,  the  student  will  have  inventories,  and  work  in  at  least 
.two  departments,  or  classes  of  goods.  To  prepare  him  for  this  we  present  here  a  form  of 
report  filled  out  to  include  preceding  inventories  and  work  in  two  departments  of  merchan- 
dise. The  student  will  observe  that  except  for  the  inventory,  and  its  effect  on  other  figures,  the 
work  of  Department  A  is  the  same  as  in  95,  but  that  the  work  of  Department  E  is  new.  It  is  in 
fact,  except  for  the  introduction  of  an  inventory  at  beginning,  an  exact  copy  of  the  report  of 
one  of  the  author's  former  students,  and  contains  all  the  errors  that  were  in  his  original  work 
at  that  time.     It  was  his  first  report.     See  form  of  Report  on  next  page. 

1.  Take  Your  First  Number  from  the  debit  footing  of  merchandise  and  enter  it  in  the  totals 
column  of  Line  3  exactly  as  shown  in  the  form  following. 

2.  The  Next  Step  is  to  enter  the  net  inventory  of  each  department  on  Line  i,  in  the 
respective  department  columns  and  the  total  net  inventory  of  Merchandise  in  the  Totals  column. 


1,     This  rate  of  discount  being  12i^%,  I  of  711.12  should  equal  the   discount  88.89   found  on  Line  6. 


102 


CAMPBELL'S  ACTUAL   ACCOUNTING 


3.  Your  Third  Step  will  be  to  enter  the  total  sum  of  the  credits  of  the  wholesale  firms 
from  whom  you  have  been  purchasing  on  the  second  line  in  Department  A  column. 

4.  Subtract  the  Total  Inventory  on  Line  i  from  the  Total  Cost  of  merchandise,  Line  3, 
and  write  the  remainder  in  the  Totals  column  on  Line  2. 

5.  Subtract  from  this  Total  Purchases  amount  the  number  entered  on  the  same  line  in 
Department  A  column,  and  the  remainder  will  be  the  goods  purchased  for  Department  E.  Enter 
this  on  the  second  line  in  Department  E  column. 

6.  Now  Add  Lines  i  and  2  in  each  Department  column,  writing  the  result  on  Line  3  be- 
neath. Then  add  together  the  department  amounts  on  Line  3  and  if  your  work  is  correct,  the 
result  will  agree  with  the  number  in  the  Totals  column  on  the  same  line. 

7.  Your  Next  Step  is  to  deduct  your  present  inventory  at  its  net  value,  entering  the  total 
inventory  in  the  Totals  Column,   Line  4,  and  the  inventory  of  goods  in  each  department  on  the 


£xpert  Report  on  business 


Outline,^ 


Rapectfully  Submitted, 


1.  Last  Preceding  Inventory 

2.  Purchases  of  Merchandise 

Mdinf  Una  I  *ni  2  tiia 

3.  Total  Cost.    (Mdse.  debit) 

Dedttctine  from  tbis  the 

4.  Present  Inventory     - 

ci«n 

5.  Cost  of  Goods  Sold 

Add 

6.  Trade  Discount 

To  obuin 

7.  Sales  at  List  Prices 

Then  deduct 

8.  Selling  Discount 

And  the  result  sbowi  what 

9.  Sales  Should  be 

Prom  Mdae.  credit  take 

10      Sales  Per  Ledger 

and  submctint 
11.     Line  10  from  9  shows  errors 


Totals 


Inventories, 

Purchases, 

Discounts, 

Sal«s, 

Etc. 


Dept.  A 


^1^/1 


£^e£^ 


^2, 


Ct^^ 


^^£2 


ii 


u 


Z£2l 


±'^ 


2z: 


Goods  bought 
at/.^/^   1o  ofF 

from  list  price 

and  sold 
atJ^2 1<.  ofF 


J- 


^L^2^ 


.<^ZL 


22 


^2 


ra 


3^ 


'^Al.LL 


±€l2^\ 


a.4^ 


ZA 


.2 


^^^^: 


^^i7f 


Dept.  B 


(joods  bought 
at 1"  ofF 

from  list  price 

and  sold 
at %off 


2-23 


33 


Dept.  C 


Goods  bought 
It 'f'  off 


from  list  price 

and  sold 
at  ^'  off 


Dept.  D 


Goods  bought 
at ^«  off 

from  list  price 

and  sold 
at ''"  off 


Dept.  E 


Goods  bought 
_*  off 


at- 


from  list  price 

!''  off 


^ 


y.i!^-^f 


Li;^.^ 


:^^z. 


L'2L<2. 


•^£.^ 


"^z^f 


32. 


^ 


L^ 


m 


^9 


12. 


M- 


Line  9  leM  line  *i  ahows  what 

Gains  should  be 

Une  10  leas  line  S  shows  vbat 

Gains  are 
Une  121cm  line  U  iboiri 

EiTon      ... 


^ 


^^ 


^'if 


;2^ 


^^^: 
^7^ 


-tt- 


z^ 


^'9 


W 


15.  Per  cent,  of  Merchandise  Gain  or  Loss  on  Cost  of  Goods  Sold^ 

16.  Per  cent,  of  Loss  for  Freight* 

17.  Per  cent,  of  Loss  for  General  Expenses 


18.  Per  cent,  of  Net  Gain  or  Loss  on  Cost  of  Goods  Sold^ 

19.  On  Investment 

20.  What  Per  cent,  must  Sales  Increase  to  make  10!^  Net  on  Investment  f 


N.  B.     In  subtractine.  when  the  subtrahend  is  the  larger,  write  the  result  in  red  ink.     If  either  subtrahend  or  minuend  be  in  red  ink,  add  to  obtain  the 

difference  and  write  the  result  in  the  same  color  as  the  minuend. 


1.  When  we  know  that  there  have  been  no  sales  in  a  department,  and  that  therefore  the  remainder 
brought  down  on  Line  5  represents  errors,  we  always  increase  it  by  the  correct  per  cent,  of  trade  discount 
represented  on  Line  6,  because  the  errors  will  always  be  easier  to  recognize  on  the  list  basis;  but  we  are  care- 
ful not  to  complicate  it  by  deducting  a  selling  discount,  hence  we  carry  it  down  the  rest  of  the  column  un- 
changed. 

2.  This  result  being  in  red  would  mean  a  loss  if  we  did  not  know  it  to  be   an  error. 

3.  For  gain,  mark  out  the  words,  or  loss,  and  vice  versa. 

4.  To  obtain  per  cent,  of  freight,  compute  for  the  entire  amount  of  freight,  on  the  total  cost  of  mer- 
chandise, provided  all  fi  eight  bills  are  in  and  charged.  If  not,  then  compute  on  the  total  of  the  invoices  on 
which  the  freight  has  been  paid. 

5.  Compute  this  on  the  Cost  of  Goods  Sold,  taking  a  careful  inventory  of  rent  unused,  salaries  unpaid, 
etc,  as  in  77  (a)  and  (b). 


CAMPBELL'S   ACTUAL   ACCOUNTING  103 

same  line  in  the  respective  department  columns.  Subtracting  each  number  on  Line  4  from 
the  number  in  the  same  column  on  Line  3  gives  three  footings  on  Line  5,  one  in  the  Totals 
column  and  one  in  each  department  column.  To  prove  the  work,  the  sum  of  the  numbers  in  the 
department  columns  should  equal  the  number  m  the  Totals  column. 

8.  To  Compute  from  the  cost  of  goods  to  the  amount  of  sales,  with  our  plan  of  prices,  it 
is  necessary,  as  in  94  (b)  4,  to  find  the  value  of  these  goods  at  list  price,  and  for  this  purpose 
we  add  the  trade  discount  allowed  us  when  we  bought  the  goods.  For  method  of  computing  this 
discount  in  Department  A,  see  94,  4,  and  for  the  discount  in  Department  E  column,  see  21. 
Enter  these  discounts,  when  found,  in  their  respective  department  columns  and  the  sum  of  the 
two  discounts  in  the  Totals  column  on  the  same  line. 

9.  Adding  Lines  5  and  6  we  have  on  Line  7,  Sales  at  List  Prices  both  in  the  total  and 
by  separate  departments.  Prove  the  accuracy  of  the  discounts  found  in  8  above  as  instructed  in 
94,  5  footnote,  observing  that  the  discount  in  Department  A,  column  is  12^/^%  and  that  in 
Department  E,  3%. 

10.  To  Find  the  Amounts  for  which  these  goods  should  have  sold,  we  have  only  to  deduct 
from  the  amount  in  each  department  column  the  selling  discount.  Obtain  the  discount  in  Depart- 
ment A  column  by  computing  3%  of  the  amount  on  Line  7  and  enter  it  on  Line  8.  Noting 
that  there  have  been  no  sales  made  of  Department  E  goods,  we  are  aware  that  the  figures 
standing  on  Line  9  in  that  column  record  an  error.  We  will  therefore,  not  complicate  it  by 
deducting  any  selling  discount.  The  discount  in  the  Totals  column  being  always  obtained  by 
adding  the  discounts  in  the  department  columns,  it  appears  in  this  case  the  same  as  the  dis- 
count in  Department  A. 

11.  Performing  the  Subtraction  required,  we  have  on  Line  9  what  our  Sales  Should  Be 
computing  on  the  basis  of  cost  at  our  regular  per  cent,  of  profit. 

12.  Turning  to  the  Ledger  to  see  what  our  sales  are,  we  enter  the  total  footing  of  the  Mer- 
chandise credit  on  Line  10  in  the  Totals  column.  If  we  had  made  any  sales  in  Department  E, 
we  would  turn  next  to  the  account  of  the  T.  &  T.  Co.,  in  our  customers'  ledger  and  would  enter 
the  debit^  of  that  account  on  Line  10  in  Department  E  column.  The  difference  between  this 
amount  entered  in  Department  E  column  and  the  amount  in  the  Totals  column  would  give  us 
the  amount  of  sales  in  Department  A.  There  being  no  sales  in  Department  E  at  this  time,  we 
enter  in  Department  A  on  Line  10,  the  total  credit  of  Merchandise,  or  the  same  figures  that  we 
have  just  entered  in  the  Totals  column.  The  student  should  be  able  to  perform  without  further 
instruction,  the  work  indicated  on  the  expert  report  blank  noting  that  when  completed,  this 
report  not  only  shows  all  the  errors,  but  that  it  is  designed  also  to  show  the  gains  and  losses  and 
as  a  proof  of  accuracy  to  show  the  same  errors  in  gains  and  losses  that  appear  first  in  the  sales. 
Work  out  fully  the  answers  to  the  percentage  questions  at  the  foot  of  your  blank  report  and  enter 
them  as  indicated. 

96.     Method  for  Finding  Errors  That  the  Trial  Balance  Does  not  Discover. 

(a)  The  student  who  is  doing  his  first  day's  work  in  actual  accounting  will  not  need  the 
instructions  of  paragraph  (i)  at  this  time,  but  will  commence  with  (2)  below.  But  for  his  general 
understanding  of  the  subject  and  that  he  may  be  able  to  work  out  the  problems  following,  he 
should  study  this  paragraph  as  applying  to  future  work. 

(i).  Take  a  page  of  specially  ruled  broad  proof  paper  and  enter  on  the  first  line  marked, 
Old  Inventory,  in  the  form  (b),  not  the  inventory  taken  just  before  beginning  this  proof,  but  the 
last  preceding  inventory,  the  total  of  which  is  found  at  the  head  of  the  debit  column  of  Merchandise 
in  the  ledger,  and  which  appears  both  in  total  and  in  department  totals  on  Line  i  of  the  form  in  95. 

Turn  back  in  your  journal  or  inventory  book  to  the  inventory  taken  at  the  last  preceding 
closing  of  the  books  and  enter  the  Department  A  inventory  on  the  first  line  of  your  proof  sheet 

1.  The  amount  to  be  taken  from  the  T.  &  T.  Co.'s  account  for  this  proof  is  always  the  total  debit  since 
the  last  closing  of  the  books.  That  is  all  that  should  be  included  in  the  present  pro6f.  This  forms  a  good 
reason  for  the  student's  ruling  the  T.  &  T.  Co.'s  account  at  each  closing  of  the  ledger. 


I04 


CAMPBELL'S  ACTUAL   ACCOUNTING 


as  the  Old  Inventory  is  entered  below,  entering  the  net  inventory  in  the  Net  Amount  column, 
the  discount  in  the  Discount  column,  the  list  value  in  the  List  Amount  column  and  the  exten- 
sions at  list  value  in  the  distribution  columns  writing  the  name  of  the  item  at  the  head  of  the 
column. 

(2)  Take  the  invoices  received  from  your  wholesale  houses  and  list  them  as  illustrated  by 
the  invoices  numbered  i,  7,  13,  at  the  top  of  the  form  96  (b)  below,  first  entering  the  net  amount 
of  the  bill  in  Net  Amount  column,  next  the  trade  discount  in  the  Discount  column,  then  the  total 
of  the  extensions  in  the  List  Amount  column,  and  the  extensions  themselves  each  in  the  separate 
columns  designated  by  the  items  of  the  invoice. 

(3)-  When  all  your  wholesale  invoices  are  entered  in  this  manner,  add  each  column,  enter- 
ing its  footing  in  red  ink  on  the  first  line  at  the  foot  of  the  column  without  any  ruling,  the 
color  being  sufficient  to  indicate  the  totals.  To  prove  the  accuracy  of  the  incoming  invoices  add 
horizontally  the  footings  of  the  items  or  distribution  columns,  the  sum  should  equal  the  footing 
of  the  List  Amount  column.  If  it  does,  there  were  no  errors  made  in  adding  the  extensions  of  the 
wholesale  invoices.  Next  compute  the  total  trade  discount,  i2i/^%  of  the  total  of  the  List 
Amount  column ;  this  should  equal  the  total  of  the  Discount  column,  and  if  it  does,  it  proves  that 
no  errors  are  made  in  computing  the  discount  on  those  invoices.  Lastly  subtract  the  footing  of 
the  Discount  column  from  the  footing  of  the  List  Amount  column,  and  if  the  remainder  equals 
the  footing  of  the  Net  Amount  column,  it  proves  that  no  error  was  made  in  subtracting  the  dis- 
counts ;  hence,  that  there  are  no  errors  whatever  in  the  invoices  unless  they  should  appear  in  in- 
correct prices  or  quantities,  and  if  any  errors  exist  there,  they  will  appear  in  this  proof.  If  you 
find  any  error  in  your  work  to  this  point,  mark  with  an  x  the  column  in  which  it  occurs  and 
wait  for  correcting  it  until  you  have  studied  entirely  through  this  section. 

(4).  Next  take  your  present  inventory  of  goods  in  Department  A  and  enter  it  in  black  ink 
on  the  line  following  the  totals  of  the  purchases,  as  shown  on  the  line  marked  Pres.  Invent,  in 
the  form  (b)  below ;  and  subtract  each  number  in  the  distributed  inventory  from  the  correspond- 
ing number  in  the  total  of  purchases  footings  in  red  ink  above.  Write  the  remainder  in  red  ink  on 
the  first  line  below  the  Present  Inventory.  It  will  show  the  cost  of  the  Goods  Sold,  both  at  net 
and  list  prices  with  the  list  amounts  of  the  items. 


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CAMPBELL'S  ACTUAL   ACCOUNTLNG 


105 


(5).  Next  turn  to  your  journal,  sales  book,  or  order  tickets  (wherever  you  will  be  able  to 
find  a  complete  record  of  your  sales  to  students),  and  list  these  sales  in  order,  exactly  as  you  have 
listed  the  wholesale  invoices  and  as  shown  in  the  form  in  96  (b)  below  by  the  sales  numbered 
consecutively  i  to  6.  These  sales  having  been  made  out  of  the  goods  represented  by  your  whole- 
sale purchases,  be  careful  to  distribute  the  extensions  of  each  item  into  the  column  to  which  it 
belongs  as  indicated  by  the  title  at  the  head  of  the  column.  When  all  your  sales  have  been  entered 
and  the  extensions  of  the  items  distributed,  add  each  of  these  sales  columns  as  you  added  the 
columns  of  wholesale  purchases,  being  careful  not  to  include  the  red  ink  footings  of  the  Cost  of 
Goods  Sold,  in  this  addition  of  sales.  When  this  is  done  observe  that  the  accuracy  of  your  work 
in  billing  is  capable  of  the  same  proof  that  we  applied  to  the  wholesale  invoices,  namely, — the 
sum  of  the  footings  of  the  distribution  columns  equals  the  total  of  the  List  Amount  column, 
your  total  trade  discount,  3%  of  the  List  Amount  column  equals  the  footing  of  the  Discount 
column ;  and  the  footing  of  the  Discount  column  subtracted  from  the  List  Amount  column 
gives  the  footing  of  the  Net  Amount  column. 

(6).  Having  thus  proved  the  adding,  the  discounting  and  subtracting  of  the  discount  of  each 
sale  to  be  correct  (if  you  find  errors  mark  them  as  instructed  in  (3)  above)  there  remains  but 
one  possible  chance  of  error,  namely, — in  your  inventory,  or  in  the  prices  and  quantities  of  goods 
bought  or  sold.  To  prove  these,  subtract  the  red  ink  footings  of  all  the  columns  representing 
sales  amounts  from  the  corresponding  columns  of  the  line  marked  Cost  of  Merchandise  Sold,  writ- 
ing the  differences  in  their  respective  columns  in  black  ink.  These  differences  will  be  errors,  ex- 
cept in  the  Net  amount  and  Discount  columns,  where  they  show  the  gains  and  should  be  the  same, 
agreeing  also  with  the  gains  shown  in  this  department  in  the  expert  report.  Observe  further  that 
since  the  list  values  of  goods  sold  agrees  with  the  Cost  of  Sales,  this  proves  first,  that  the  quan- 
tities of  the  various  kinds  of  goods  billed  to  you  in  the  incoming  invoices  and  the  quantities 
listed  in  the  inventory  are  correct,  unless  it  be  possible  that  you  made  exactly  the  same  error  in 
selling,  which  is  at  least  improbable.  Second,  since  your  purchases,  your  inventory  and  your 
sales  are  each  based  on  the  same  list  price  (though  with  different  trade  discounts  in  sales)  this 
proves  also  the  accuracy  of  the  prices  as  per  list,  throughout  all  your  work. 


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CAMPBELL'S   ACTUAL   ACCOUNTING 


(d)     Take  up  now  the  work  of  Department  E. 

(i).  First  enter  the  last  preceding  department  inventory  as  shown  in  the  form  (c)  on  the 
line  marked  Old  Inventory. 

(2).  You  will  next  make  a  list  of  all  the  invoices  bought  that  belong  to  this  department, 
distributing  the  extensions  exactly  as  you  did  in  the  matter  of  the  wholesale  invoices  and  as 
shown  in  form  (c)  above,  and  will  add  each  of  these  columns,  entering  the  footings  in  red  ink. 

(3).  Proceeding  to  prove  the  purchases  of  Department  E  in  the  manner  in  which  we  proved 
the  purchases  of  Department  A,  you  will  add  together  the  footings  of  the  distribution  columns 
and  will  observe  that  these  exactly  equal  the  footing  of  the  List  Amount  column.  This  proves 
that  there  are  no  errors  in  the  additions  of  these  invoices.  Now  compute  3%  of  the  list  amount 
(the  trade  discount  in  this  class  of  goods)  and  observe  that  it  does  not  agree  with  the  footing  of 
the  Discount  column.  This  shows  us  that  there  is  an  error  of  the  difference  of  $1.10  somewhere 
in  the  computation  of  these  discounts. 

(4).  Subtracting  the  $76.76  footing  of  the  Discount  column  from  the  footing  of  the  List 
Amount  column,  we  fiml  that  it  gives  $1.25  more  than  the  footing  of  the  Net  Amount  column, 
showing  us  that  there  is  an  error  of  $1.25  in  the  subtraction  of  the  discount  in  some  of  these 
invoices. 

(5).  But  the  proof  submitted  in  95  shows  us  a  total  error  of  $63.59  in  the  work  of 
Department  E  and  we  have  thus  far  discovered  but  a  small  amount  of  it, — really, errors  amounting 
to  $2.35,  but  as  you  will  see  presently,  errors  that  offset  each  other  so  that  the  total  amount  that 


CAMPBELL'S   ACTUAL   ACCOUNTING 


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enters  into  the  $63.59  error  in  the  expert  report  in  only  15c,  as  will  appear  later.  While  we 
evidently  have  quite  a  total  of  errors  still  to  account  for,  we  will  do  well  to  definitely  locate  the 
errors  that  we  know  now  to  exist, 

(6).  To  find  the  errors  in  the  Discount  column  it  will  be  necesary  to  commence  at  the  top 
of  the  column  and  carefully  compute  the  discount  on  each  list  amount  to  see  whether  or  not  it 
agrees  with  the  amount  set  on  the  same  line  in  the  Discount  column.  Taking  the  first  list  amount, 
Invoice  2,  and  computing  3%,  we  find  that  it  comes  to  $1.04  instead  of  the  94c  that  appears  in 
Discount.  Here  then,  we  have  found  loc  of  the  $1.10  error  in  discount.  Proceeding  down  the 
column,  we  find  each  computation  correct  until  we  come  to  the  nth  invoice.  Here  we  find  that 
3%  of  the  list  amount  gives  us  $3.79  instead  of  the  $2.79  in  the  Discount  column,  and  we  have 
found  the  remaining  error  in  discounting. 

(7).  To  find  the  errors  in  subtracting  discounts,  we  must  proceed  in  the  same  manner. 
Commencing  at  the  top  of  the  columns,  we  subtract  the  discount  as  it  appears  in  the  Discount 
column  (not  the  corrected  discount)  from  the  amount  in  the  list  column  and  carefully  working 
down  the  column,  we  find  that  the  first  error  in  subtraction  occurred  in  Invoice  17  and  that  it 
amounts  to  $1.00.  All  other  invoices  are  found  to-be  correct  so  far  as  the  subtractions  are  con- 
cerned, until  we  come  to  Invoice  21,  where  we  find  an  error  in  subtraction  of  the  remaining  25c. 

(8).  If  you  will  study  these  errors  you  will  observe  that  the  error  of  $1.00  in  the  Discount 
column  would  reduce  the  total  of  the  Net  Amount  column  when  corrected,  and  that  the  error  of 
$1.00  in  the  subtractions  increases  the  Net  Amount  column  so  that  the  two  errors  of  $1.00  each 
cancel  each  other  in  the  final  result  and  leave  only  the  difference  between  the  loc  error  and  the 


io8  CAMPBELL'S   ACTUAL  ACCOUNTING 

25c  error  (which  also  have  cancelled  each  other  so  far  as  they  can)  appearing  in  the  result  as 
15c. 

(9)  Observe  that  the  report  in  95  shows  no  sales  of  goods  in  Department  E.  We  should 
then  have  on  hand  as  an  inventory  all  the  merchandise  bought.  Taking  this  inventory  care- 
fully and  writing  it  in  black  ink  immediately  beneath  the  red  ink  totals  of  invoices  bought,  you 
will  find  that  it  agrees  in  most  of  the  distribution  columns,  but  that  it  differs  by  being  ic 
smaller  in  granulated  sugar,  5c  larger  in  Mocha  coffee  and  $63.78  smaller  in  Java  coffee.  These 
three  added  together  (algebraically^)  give  the  total  of  $63.74,  which  you  find  is  the  difference 
between  the  List  Amount  of  purchases  and  the  list  amount  of  inventory. 

(10)  The  apparent  error  of  ic  in  granulated  sugar  is  due  as  you  will  see,  to  the  purchase 
of  two  invoices  at  $61.88  each,  when  in  each  case  by  exact  computation  the  amount  would  have 
been  $61.87!/^.  This,  therefore,  is  not  an  error  but  is  the  natural  result  of  the  seller's  taking  the 
half  cent,  which  is  his  privilege. 

(11).  To  find  the  5c  error  which  appears  in  red  ink  in  the  column  headed  Mocha  coffee,  you 
will  take  up  Invoices  12,  17  and  18 — all  which  contain  this  item  of  Green  Mocha  Coffee  and  going 
carefully  over  these  extensions,  you  will  find  this  error  in  the  computation  of  extensions  in  In- 
voice 12,  not  a  mistake  in  the  additions  or  subtractions  of  discount,  but  a  mistake  made  in 
multiplication  of  quantity  and  price.  The  mistake  is  in  your  favor  and  it  would  be  a  matter  of 
honor  to  correct  it,  but  it  is  so  small  as  scarcely  to  be  considered  worthy  of  notice.  We  will  let  it 
go  into  the  Losses  and  Gains. 

(12)  To  find  the  large  error  of  $63.78  in  Java  coffee,  it  is  necessary  as  in  the  preceding 
error  to  select  out  of  the  invoices  all  that  contain  the  item  of  Java  coffee,  namely, — the  4th, 
8th,  9th,  loth  and  nth  invoices  and  to  look  through  each  carefully  for  the  error.  You  will  find 
it  in  Invoice  8,  where  4  sacks  of  coffee  were  billed  to  you  at  just  double  weight.  This  error 
is  of  sufficient  importance  to  be  corrected  in  any  business,  and  the  student  should  render  a  bill 
for  the  amount  of  the  error  to  the  firm  which  sold  him  the  invoice.  Having  now  found  a  total 
error  of  $63.74  by  correcting  which  the  total  of  invoices  bought  will  be  decreased  and  an  error  in 
computation  of  15c,  by  which  the  list  value  of  goods  bought  would  be  increased,  we  have  found 
a  total  error  of  the  difference  between  these  two  sums  of  $63.59,  which  is  the  exact  amount  of 
error  shown  in  our  expert  report.  If  the  15c  error  were  sufficiently  large,  it  would  be  necessary 
to  add  to  it,  its  3%  trade  discount  before  subtracting  from  the  $63.74,  but  3%  of  15c  is  less  than 
a  half  cent  and  does  not  count  in  the  result.  Observe  that  taking  the  difference  between  the  dis- 
count column  footing  and  the  discount  on  inventory  gives  8ic  which  is  not  the  discount  on 
errors  but  a  combination  of  the  discount  on  errors  and  the  errors  in  discount.  Subtracting  it 
from  $1.91  the  discount  on  the  error  in  List  Amount  column,  gives  $1.10  the  error  in  discounts. 
Also  note  that  $61.68  obtained  by  subracting  in  the  Net  Amount  column  is  not  the  net  amount 
of  error,  which  is  obtained  by  subtracting  $1.91  from  the  List  amount,  $63.74,  giving  $61.83.  The 
difference  between  this  and  the  $61.68  shows  the  15c  of  apparent  error  in  computations,  and  this 
added  to  the  $1.10  of  error  in  discounts,  shows  the  $1.25  of  error  in  subtracting  discounts. 

(e)  When  all  the  errors  have  been  discovered  consult  76  (b)  for  the  proper  method  of 
correcting  them  and  as  to  whether  or  not  all  should  be  corrected.  The  correct  principle  is  to 
find  all  errors  and  to  correct  all  that  an  honest  man  would  correct  in  business.  So  small  an  error 
as  the  turning  of  the  half  cent  the  wrong  way,  while  worth  finding,  is  evidently  too  small  to  be 
corrected  in  business,  and  even  larger  errors,  if  against  yourself,  may  clearly  belong  to  this  class. 

97.  Instructions  for  Securing  Orders,  (a)  You  are  not  to  go  around  the  schoolroom  solicit- 
ing orders.    Such  a  practice  has  been  heretofore  considered  an  unavoidable  nuisance  and  time 

T.  Algebraic  addition  may  not  be  understood  by  all  students  of  this  text.  It  is  sufficient  for  present 
purposes  to  explain  that  it  means  to  add  together  separately  the  amounts  appearing  in  black  ink  and  in  red 
ink  and  to  take  the  difference  between  them,  writing  it  in  the  same  color  of  ink  as  the  larger  number.  While 
a  man  may  do  ordinary  bookkeeping  all  his  life  without  really  using  algebra,  no  one  can  ever  become  a  thor- 
oughly competent  accountant  without  such  knowledge  of  mathematics  as  algebra  gives;  and  will  probably  ob- 
tain it  easiest  by  studying  algebra. 


CAMPBELL'S   ACTUAL  ACCOUNTING  109 

waster  in  any  actual  business  course,  so  much  so  that  on  this  point  alone  a  majority  of  the  best 
business  colleges  of  the  country,  have  decided  against  an  actual  business  course,  in  spite  of  its 
many  acknowledged  advantages.  Soliciting  orders  would  be  a  proper  part  of  the  work  in  a 
school  of  salesmanship,  but  no  reliable  business  college  will  pretend  that  any  student  learns 
anything  whatever  of  salesmanship  running  around  a  schoolroom  and  asking,  Do  you  ivant  to 
buy  anything^  (it  does  not  matter  what;  in  some  courses  they  also  ask.  Want  to  sell  any- 
thing?) There  is  no  salesmanship  in  that.  To  pretend  that  it  is  either  natural  business,  or 
salesmanship  is  fraud.  It  causes  confusion  and  is  a  waste  of  time.  We  seek  to  avoid  this  and  to 
push  the  study  of  accounting. 

(b)  Your  teacher  is  the  Purchasing  Agent  for  each  student  customer  and  as  such  knows  just 
what  each  buyer  wants,  and  has  authority  to  purchase  for  him. 

(c)  To  save  himself  time,  he  delegates  to  you  the  making  up  of  these  orders,  under  his 
authority  and  instructions.  His  instructions  are  specifically  stated  on  the  back  of  your  cus- 
tomers' pad  of  Order  Blanks.  Following  these  instructions,  you  will  now 

(d)  Secure  Orders  for  your  next  day's  trading  and  have  them  ready  for  your  teacher's  O. 
K.  as  purchasing  agent  when  you  submit  your  books  for  approval.  The  goods  that  you  have  to 
sell  are  the  merchandise  represented  by  the  tickets  remaining  from  your  former  orders,  to- 
gether with  that  recently  ordered  as  instructed  in  91,  9  fa). 

98.  Making  the  Daily  Report  and  Submitting  Books  for  Approval.  When  all  the  preced- 
ing work  is  completed  as  outlined,  fill  out  carefully  a  full  Report  Blank  and  copy  it  into  the 
form  in  this  section  designated  as  (f).  When  this  is  done  arrange  your  books  for  inspec- 
tion, first  dustingi  them  carefully,  then  opening  each  at  the  place  of  the  last  work  done,  and 
placing  them  one  on  top  of  another  as  follows : 

(a)  Open  your  text  book  to  show  your  copied  report  and  on  top  of  it  place  your  trial  bal- 
ance book  opened  at  the  place  where  your  present  balance  is  entered.  Look  the  work  over 
critically  to  see  that  it  is  in  perfect  condition.  See  that  the  ledger  page  of  each  account  is  entered 
in  the  proper  column,  and  the  date  of  closing  at  the  head  of  the  columns  containing  the  figures 
of  the  balance. 

(b)  On  top  of  the  trial  balance  book,  opened  as  above,  place  the  journal,  opened  at  the  last 
posted  entry,  having  first  looked  carefully  to  see  that  all  posting  checks  have  been  correctly 
entered,  and  that  the  correct  date  appears  at  the  head  of  each  page  of  work. 

(c)  Examine  the  ledger  critically.  See  that  the  year  date  appears  at  the  head  of  every 
date  column  in  which  there  is  a  date  entered,  and  that  there  is  a  date  and  a  journal  reference  for 
every  posted  amount,  also  that  the  total  of  each  column  containing  more  than  one  number  appears 
in  neat,  hard  lead  pencil  figures  close  under  the  last  number  in  the  column.  Then  open  your 
bill  book  at  either  the  bills  receivable  or  the  bills  payable  record  and  place  it  open  in  the  ledger 
at  the  corresponding  account,  placing  the  ledger,  opened  at  Cash,  on  top  of  the  open  journal. 

(d)  On  top  of  the  ledger  opened  at  Cash,  place  the  check  book  opened  to  show  the  balance 
in  the  bank. 

(e)  Lastly,  place  on  top  of  all  these  books  so  arranged,  orders  prepared  as  instructed  in 
97,  your  "expert  report"  with  all  the  work  done  in  finding  and  correcting  errors,  and  your 
loose  copy  of  your  report,  and  present  your  books  at  the  teacher's  desk  for  his  criticism  and 
approval.^ 


1.  The  object  in  dusting  the  books  at  this  time  Is  to  avoid  soiling  the  open  pages  by  contact  with  the  back 
of  the  next  book.  A  careful  student  will  do  well  to  prepare  a  number  of  sheets  of  clean  blank  wrapping 
paper,  the  size  of  an  open  book  and  keep  these  to  place  between  the  open  books  when  submitting  them,  just  as 
a  printer  uses  "slip  sheets"  to  prevent  "offsetting." 

2.  Be  careful  to  have  your  books  arranged  exactly  in  the  order  prescribed  (unless  your  teacher  has 
directed  otherwise)  and  when  you  go  to  the  desk,  stand  waiting  respectfully  until  he  signifies  that  he  is  ready 
to  consider  them.  It  is  his  plan  to  give  this  daily  marking  of  books  precedence  over  work  of  any  other  nature 
that  he  may  be  doing,  only  as  a  matter  of  ordinary  business  courtesy  you  must  be  careful  not  to  interrupt  him 
in  a  conversation  or  in  any  computation  that  he  may  be  making  in  the  interest  of  any  other  student. 


no 


CAMPBELL'S  ACTUAL  ACCOUNTING 


(f)  REPORT 

Report  of  School  Duties''     I  take  bookkeeping Hours  a  day. 

Hours  worked  since  last  report ,  Absent Total No.  of  Letters  written 

No.  of  Invoices  bo't  of  wholesale  houses Of  students ,   Total 

No.  of  Payments  made  in  cash ;   in  notes ;    in    acceptances ;     Total 

No.  of  Payments  rec'd  in  cash...*. ;   in  notes ;    in    acceptances ;     Total 

No.  of  Sales  made:     To  T.   &  T.  Co ;    to  students ;  Total  No ,  $ 

No.  of  Entries   made Average   per  hour Time  on  trial  balance hours. 


NOTES 


Bills  Heceivahle,  Ledger  Balance 

Total  uncollected  in  bill  book 

Total  value  of  notes  in  the  safe 

Bills  Payable,  Ledger  Balance  — 
Total  unpaid  in  bill  book — 


CASH 


Ledger  Balance 

In  bank,  Stb.  No.. 
In  safe,  Currency 
In  safe,  Checks,  _ 


Total  Cash  on  hand. 


MERCHANDISE 


Cost  of  Mdse.  bought 

Present  inventory 

Cost  of  goods  Bold  

Sales  of  merchandise 

Gain,  red  ink ;  Loss,  black 

Errors:  Ourfvr.red;  cont.  black 


Department  A 
Goods 


Department  E 
Goods 


TEACHER'S  MARKING 


Accuracy. . . 
Neatness . . . 
Orderliness. 
Records  . . . . 
Progress. .  . 
Average.  . . 


Respectfully  submitted, 


,191.... 


TEACHER'S 


STAMP 


(g)  When  your  teacher  has  approved  your  work  to  this  point,  it  will  be  necessary,  if  your 
proof  of  Merchandise  taken  as  per  instructions  94  to  96  shows  errors,  for  you,  if  you  have  not 
already  done  so,  to  make  additional  journal  entries  correcting  these  errors,  as  instructed  96  (e). 
For  corrections  not  apparently  included  in  these  instructions,  consult  your  teacher.  If  your 
proof  shows  correct  work  and  no  errors,  you  will  with  your  teacher's  approval  omit  (h)  follow- 
ing and  proceed  to  99.     But  if  there  are  errors  the  closing  required  in  (h)  is  indispensable. 

(h)      (i).     Take  a   New   Trial   Balance;    for  instructions  see  70.     Then  proceed  to 

(2).     Make  out  a  Balance  Sheet,  as  instructed  in  78-81  and  to 

(3).  Close  Your  Ledger,  as  instructed  in  82.  In  taking  an  inventory  of  Expense  account  for 
this  closing,  estimate  the  time  you  have  spent  on  your  work  since  you  commenced  business  for 
yourself  as  a  part  of  a  month  not,  however,  as  more  than  one-fourth  of  a  month,  there  being  three 
other  daily  closings  in  this  outline  that  will  share  in  this  expense  for  rent. 

(i)  When  this  is  done  copy  the  problems  following  in  99  into  four  separate  Expert  Report 
blanks  being  careful  to  write  each  number  exactly  on  the  line  and  in  the  column  to  which  it 
belongs ;  and  then  submit  to  your  teacher  all  books  which  you  have  used  in  connection  with  your 
own  business  (not  C.  W.  Burke's)  for  criticism  and  grading,  first  arranging  them  carefully  as 
instructed  in  98.     While  your  teacher  is  looking  over  your  books  you  will  work  out  the  prob- 


CAMPBELL'S   ACTUAL   ACCOUNTING 


III 


(I) 


lems  that  you  have  just  copied,  as  per  instructions  in  99.    When  you  hand  them  in  correctly 
worked  your  teacher  will  return  your  books  and  place  his  stamp  in  the  form  below, 

99.  Problems.  To  familiarize  himself  with  the  method  of  working  out  the  proof  of 
accuracy  presented  in  94  and  95  as  well  as  for  practice  in  the  principles  of  percentage  involved, 
the  student  will  work  out  on  expert  report  blanks  and  hand  to  his  teacher,  the  following  prob- 
lems using  the  data  given  in  the  tabulated  form  below  and  completing  the  report  to  show 
errors,  gains,  losses,  etc.  All  the  data  for  which  you  would  turn  to  your  ledger  will  be  found 
below.     Use  the  same  rate  of  discount  as  in  regular  work. 

Data  Total 

Last  preceding  inventory 

Purchases  of  Merchandise  

Total  Cost  of  Mdse 3789  45 

Present  Inventory    

Sales  per  Ledger   1593  50 

Last  preceding  inventory   

Purchases  of  Merchandise   

Total  Cost  of  Mdse 5192  'j'j 

Present  Inventory    

Sales  per  Ledger   2409  76 

Last  preceding  inventory 

Purchases  of  Merchandise   

Total  Cost  of  Mdse 7589  89 

Present   Inventory    

Sales  per  Ledger   5021  93 

Last  preceding  inventory 

Purchases  of  Merchandise   

Total  Cost  of  Mdse 6561  23 

Present  Inventory   

Sales  per  Ledger   3810  73 


(2) 


(3) 


(4) 


)ept.  A. 

Dept.  E. 

915  05 

1012  05 

872  60 

439  86 

1949  75 

000  — 

1091  50 

371  65 

2156  78 

984  32 

1944  49 

000  — 

984  32 

1944  49 

3243  76 

1056  75 

1420  94 

1944  49 

1956  75 

1420  94 

995  64 

1057  84 

2190  — 

1385  42 

TEACHER'S 


Respectfully  submitted, 


.191..., 


STAMP 


100.     The  Second  Day's  Work. 

I.  Fill  the  orders  approved  by  your  teacher  when  your  books  were  vised,  carefully  follow- 
ing the  instructions  in  the  preceding  day's  work  as  set  forth  in  91  (see  6,  a,  b,  c,  and  d) 
EXCEPT  that  when  you  are  ready  to  deliver  these  bills  you  will  select  two  of  them,  with  one  of 
which  you  will  send  out  an  individual^  note  as  in  55,  (a),  (b)  and  (c),  and  with  the  other  a  draft 
at  thirty  days  for  acceptance,  as  in  49  and  50,  see  especially  50,  (d).  Remember  to  make  out  the 
note  and  draft  each  1%  less  than  the  amounts  of  the  respective  bills,  but  make  no  note  of  this 
discount  on  the  bill,  and  make  the  entries  (as  in  all  sales)  for  the  net  amount  of  the  bills  as 
rendered,  taking  no  note  of  the  special  discount  until  the  note  or  draft  which  you  sent  out  has 
been  signed  and  returned.  When  these  or  either  of  these  are  returned,  see  51  for  the  entry  of 
the  draft  and  58  for  the  note. 

1.  An  individual  note  is  a  note  signed  by  one  person  and  is  the  form  with  which  you  are  the  most  famil- 
iar. See  the  note  which  C.  W.  Burke  gave  to  the  Keystone  Company  in  61  or  the  note  received  from  J.  C. 
Dowell  &  Co.  in  24  (b). 


112 


CAMPBELL'S   ACTUAL   ACCOUNTING 


2.  Enter  all  invoices  that  have  been  received  and  are  unentered,  following  carefully  the 
instructions  under  91,  5,  in  your  first  day's  work. 

3.  Make  payment  for  invoices  received  (except  those  from  the  wholesale  houses,  for  which 
see  5  below)  following  instructions  in  91,  9,  in  your  first  day's  work.  If  any  payments  have  been 
made  while  closing,  as  instructed  in  91,  11  (a)  make  entry  for  them  at  this  time. 

4.  Make  entry  for  all  payments  received  for  sales  that  are  in  your  file  for  unentered  busi- 
ness, following  instructions  given  in  91,  10. 

5.  Place  a  third  order  for  merchandise  with  each  of  the  companies  from  whom  you  have 
been  ordering,  enclosing  with  each  order  a  check  for  the  amount  of  the  last  order,  less  whatever 
discount  you  are  entitled  to  by  the  terms  of  the  invoice,  and  writing  a  neat  business  letter  to  each, 

in  which  you  state  that  you  enclose  herewith  your  check  for  $ ,  being  the  amount  of  their 

invoice  of  (date  here)  less %,  with  an  additional  order  for  which  you  bespeak,  their 

prompt  attention  and  an  early  shipment.  You  may  vary  these  letters  in  wording  all  that  you  can, 
but  make  the  statement  in  each  letter  essentially  the  same  as  above  so  far  as  the  circumstances 
in  each  case  will  permit. 

6.  Pay  freight  bills  making  entry  as  in  91,  5,  Sixth. 

7.  You  are  now  ready  for  your  second  posting.  Turn  back  to  your  first  day's  work,  91,  11, 
and  follow  the  same  instructions  carefully,  except  11,  (b),  which  is  omitted  this  time  because  the 
books  are  already  opened.  You  will  not  prove  Merchandise  at  this  closing,  but  will  omit  that 
proof  of  the  work  until  the  end  of  this  outline.  When,  therefore,  you  have  worked  11,  c,  d,  e, 
f,  g,  and  h,  you  are  ready  to  make  your  final  report. 

8.  Secure  your  orders  for  your  next  day's  trading  as  per  instructions  in  97  and  on  the  back 
of  your  pad  of  Customer's  Orders,  and  prepare  them  for  your  teacher's  approval*  then  take  them 
with  your  books  arranged  as  instructed  in  98,  to  your  teacher  for  approval  having  carefully  filled 
out  a  copy  of  the  short  Daily  Report,  and  copied  it  into  your  book  in  the  form  following: 


REPORT 

Report  of  School  Duties'     I  take  bookkeeping Hours  a  day. 

Hours  worked  since  last  report ,  Absent Total No.  of  Letters  written 

No.  of  Invoices  bo't  of  wholesale  houses Of  students ,   Total 

No.  of  Payments  made  in  cash ;   in  notes ;    in    acceptances ;     Total 

No.  of  Payments  rec'd  in  cash ;   in  notes ;    in    acceptances ;     Total 

No.  of  Sales  made:     To  T.   &  T.  Co ;    to  students ;   Total  No ,  $ 

No.  of  Entries  made Average   per   hour Time  on  trial  balance hours. 


NOTES                                               1 

CASH 

Bills  Receivable,  Ledger  Balance 

Ledger  Balance  .                        

Total  uncollected  in  bill  book 

In  bank,  Stb.  No.         ,  

In  safe,  Currency 

In  safe,  Chpicks, 

Bills  Payable,  Ledger  Balance 

Total  unpaid  in  bill  book 

Total  Cash  on  hand 

Bespectf  ully  submitted, 


,191. 


TEACHER'S 


STAMP 


CAMPBELL'S   ACTUAL   ACCOUNTING 


113 


loi.     The  Third  Day's  Work. 

1.  Fill  your  orders  as  per  previous  instructions,  91,  6,  and  100,  i,  sending  out  with  two  of 
your  invoices,  notes  for  the  respective  amounts  less  one  per  cent,  and  with  two  others,  drafts  at 
30  days  for  acceptance,  less  one  per  cent. 

2.  Enter  all  invoices  that  have  been  received  and  are  unentered,  following  carefully  the  in- 
structions under  First  Day's  Work,  91,  5. 

3.  Make  payment  for  all  invoices  received  from  students,  following  instructions  in  91,  9,  as 
before.  If  you  have  made  any  payments  while  closing,  make  entry  for  them  also  at  this  time.  If 
any  of  these  payments  have  been  by  note  or  accepting  a  draft,  make  a  record  on  the  double 
page  2  of  the  Bills  Payable  side  of  your  bill  book  as  in  68. 

4.  Make  entry  for  all  payments  received  that  are  in  your  file  of  unentered  business,  follow- 
ing instructions  given  91,  10.  If  any  of  these  payments  are  by  note  or  acceptance,  make  a  record 
of  the  note  or  draft  on  the  second  double  page  of  the  Bills  Receivable  side  of  your  bill  book  as 
shown  in  67. 

5.  Place  an  order  for  merchandise  with  each  of  the  wholesale  houses  with  whom  you  have 
been  dealing,  to  whatever  extent  you  think  best,  within  the  limits  prescribed  in  your  price  list. 
Be  sure  to  secure  goods  enough  to  make  the  number  of  sales  required  for  a  day's  work.  In 
ordering  these  goods,  enclose  your  check  to  cover  the  amount  of  your  last  order,  less  whatever 
special  cash  discount  is  due,  and  write  a  neat  letter,  stating  the  amount  of  your  enclosure,  the 
date  or  order  number  of  the  invoice  you  are  paying  and  the  amount  of  discount  you  are  claiming. 
(See  letter  of  C.  W.  Burke  in  61,  c).  Conclude  each  letter  in  an  ordinary  business  way  original 
with  yourself,  and  submit  to  your  teacher  before  mailing. 

6.  Pay  freight  bill  and  enter  as  in  91,  5,  Sixth. 

7.  Make  daily  closing  as  instructed  under  91,  11  (except  lib). 

8.  When  you  have  your  work  completed  through  11,  (h),  secure  your  orders  for  next  day's 
trading,  as  per  instructions  on  your  pad  of  Customers'  Orders.  Submit  them  with  your  books 
arranged  as  instructed  under  98,  to  your  teacher  for  approval,  having  carefully  filled  out  the 
short  daily  report,  and  copied  it  carefully  into  the  form  below. 

REPORT 


Report  of  School  Duties'     I  take  bookkeeping Hours  a  day. 

Hours  worked  since  last  report ,  Absent Total No.  of  Letters  written 

No.  of  Invoices  bo't  of  wliolesale  houses Of   students ,   Total 

No.  of  Payments  made  in  cash ;   in  notes ;    in    acceptances ;    Total 

No.  of  Payments  rec'd  in  cash ....;   in  notes ;    in    acceptances ;     Total 

No.  of  Sales  made:     To  T.  &   T.  Co ;   to  students ;  Total  No $ 

No.  of  Entries  made Average  per  hour Time  on  trial  balance hours. 


NOTES                                                 j 

CASH 

Bills  Jieceivable,  Ledger  Balance 

Ledger  Balance 

Tn  bank,  Sfh.  Nn.            ,    

In  safe,  Currency 

Total  value  of  notes  in  the  safe 

Tn  safpi,  Chpf^ks, 

Bills  Payable,  Ledger  Balance 

Total  unpaid  in  bill  book. 

Total  Caph  on  hand 

TEACHER'S 


Respectfully  submitted, 


,191.... 


STAMP 


114 


CAMPBELL'S   ACTUAL   ACCOUNTING 


102.     The  Fourth  Day's  Work. 

1.  Fill  orders  as  per  previous  instructions.  Be  sure  to  submit  all  out-going  papers  to  be 
vised  before  delivering.  Send  out,  w^ith  these  orders,  one  note  less  the  usual  discount  and  one 
draft  at  30  days  for  acceptance,  as  you  did  in  the  work  of  previous  days. 

2.  Make  entry  for  all  unentered  invoices  that  have  been  received,  checking  each  carefully 
according  to  instructions  under  91,  5.  Be  sure  to  accept  no  one's  computations  except  your  own. 
If  you  find  errors,  return  the  bill  with  the  goods  to  the  seller  or  report  to  your  teacher. 

3.  Make  payment  for  invoices  received,  following  instructions,  91,  9,  as  before,  and  make 
entry  carefully  for  each  payment.  In  making  payment  by  note  or  acceptance,  remember  the  bill 
book  record.    See  68. 

4.  Make  entry  for  all  payments  received  from  customers  whether  by  cash,  note  or  accept- 
ance, following  previous  instructions.  (See  91,  10.)  Remember  the  bill  book  record  for  notes  and 
drafts.    See  67. 

5.  Place  an  order  with  each  of  your  wholesale  houses  as  in  preceding  day's  work. 

6.  Make  out  an  invoice  of  sale  to  the  Townsite  &  Trading  Co.,  including  all  goods  bought 
from  students  through  your  purchasing  agent  to  date.  Be  sure  to  copy  carefully  into  your 
journal  all  the  items  of  this  sale  the  same  as  in  any  other  sales  entry.  Discount  this  bill  2i/^%  and 
attach  invoice  to  one  of  the  Voucher  Checks  of  the  Associated  Offices,  filling  your  name  in  the 
blank  on  the  inside  of  the  folded  voucher  as  indicated  in  the  form  shown  below.  Blanks  not  indi- 
cated to  be  filled  in  the  form  are  to  be  filled  by  the  one  who  approves  the  voucher  for  payment. 


Invoice  No, 


XPPROVBO  FOR  PAYMBNT  BY_ 


-DEP'T  mcr. 


Whkn  Countersigned  by- 


(opriciAL  Trrt.«  ctbrk) 

TBB  PEBflON  COUNTERSIGNinra  %VII.L,  CROaS  OUT  THK  TITLB 
NOT  NAMBD  ABOVE  ANU  8ION  BELO^V 


PH£HU>ent.  Manaoer.  AasociATED  Offices 


Do  not  present  this  check  for  approval  and  countersigning  until  after  your  books  are  proved 
as  instructed  in  9  following. 

7.     Pay  freight  as  in  91,  5,  sixth,  then  secure  orders  for  next  day's  business,  97. 

8      Make  daily  closing,  that  is,  post,  prove  cash,   prove  bills   receivable,   etc.,   as   per  91,   11. 
(Except  II,  b  and  h,  see  76,  c.) 

9.  Prove  the  accuracy  of  your  work  from  the  beginning,  or  from  last  closing  if  you  closed 
books  as  instructed  in  98  (h),  following  instructions  under  95.  This  proof  will  include  the 
previous  proof  made  at  the  close  of  your  first  day's  work,  unless  your  books  were  closed  at  that 
time.  When  you  have  found  all  the  mistakes  shown  to  exist  by  your  expert  report,  correct  them 
as  instructed  in  76  (b)  consulting  your  teacher  if  necessary,  and  when  all  are  corrected,  take  your 
trial  balance,  as  instructed  in  91,  11  (h)  ;  then  arrange  your  books  as  in  98 
and  submit  to  your  teacher  for  approval  with  your  orders  for  next  day's 
business  and  the  report  blank  carefully  filled  out  but  not  copied  into  the 
form  in  the  text  until  after  your  teacher  has  accepted  your  work  to  this 
point  and  placed  his  stamp  here. 


CAMPBELL'S   ACTUAL   ACCOUNTING 


115 


10.  When  your  teacher  has  accepted  your  report  and  approved  the  entries  made  for  the 
correction  of  errors  discovered  in  proving  your  accounts,  present  to  him  for  approval  and  accept- 
ance the  voucher  check  drawn  in  6,  filling  in  your  name  in  the  proper  blank  in  the  face  of  the  check 
and  the  correct  amount  of  the  bill  in  the  places  for  dollars  (both  words  and  figures)  so  that  the 
check  is  entirely  ready  for  the  official  signatures.  If  your  proof  of  merchandise  made  corrections 
necessary  in  this  invoice,  see  that  the  sales  entry  made  in  102,  6  is  corrected.  Then  place  it 
in  your  file  for  unentered  business  until  after  your  books  are  reopened  for  the  business  of  Out- 
line II. 

11.  Copy  neatly  into  the  form  below  your  report  as  accepted  and  approved  by  your  teacher 
in  9  above,  then  proceed  to  make  out  a  balance  sheet  of  your  business  as  per  instructions  78  to  81. 

12.  Close  your  ledger  following  instructions  in  82  a,  b,  c,  d,  e,  f,  g,  and  h. 

13.  Close  your  other  accounts  as  per  instructions  in  83  (a)  and  (b)  and  make  out  on  journal 
paper  a  statement  in  the  form  presented  in  86.  When  this  is  completed,  leave  at  your  teacher's 
desk  for  approval  all  books  in  which  you  have  done  any  work  under  this  outline,  with  the  state- 
ment you  have  just  made  out.  While  your  teacher  is  grading  your  books,  you  will  work  out  in 
C.  W.  Burke's  books  the  practice  presented  in  103  to  107  and  when  this  is  completed  your  teacher 
will  return  to  you  the  books  he  has  been  grading  and  will  enter  his  markings  in  the  form  fol- 
lowinsf. 


REPORT 

Report  of  School  Duties'     I  take  bookkeeping — Hours  a  day. 

Hours  worked  since  last  report ,  Absent __ Total No.  of  Letters  written 

No.  of  Invoices  bo't  of  wholesale  houses Of   students ,   Total 

No.  of  Payments  made  in  cash ;   in  notes _ ;    in    acceptances ;     Total 

No.  of  Payments  rec'd  in  cash ;   in  notes ;    in    acceptances ;     Total 

No.  of  Sales  made:     To  T.   &   T.  Co ;    to  students ;    Total  No ,  $ 

No.  of  Entries  made Average   per  hour Time  on  trial  balance hours. 


NOTES 


Bills  Receivable,  Ledger  Balance 

Total  uncollected  in  bill  book , 

Total  value  of  notes  in  the  safe 

Bills  Payable,  Ledger  Balance 

Total  unpaid  in  bill  book 


CASH 


Ledger  Balance 

In  bank,  Stb.  No.. 
In  safe,  Currency 
In  safe,  Checks,  _ 


Total  Cash  on  hand. 


MERCHANDISE 


Cost  of  Mdse.  bought 

Present  inventory 

Cost  of  goods  sold  

Sales  of  merchandise 

Gain,  red  ink ;  Loss,  black 

Errors:  Ourfvr.red;  cont. black 


Department  A 
Goods 


Department  E 
Goods 


TEACHER'S  MARKING 


Accuracy. . . 
Neatness . . . 
Orderliness. 
Records  . . . . 
Progress. . . . 
Averar^e.  . . 


TEACHER'S 


Respectfully  submitted, 


^^P 


.191.... 


STAMP 


ii6 


CAMPBELL'S  ACTUAL  ACCOUNTING 
PRACTICE  PREPARATORY  TO  OUTLINE  II. 


103.  I.  Preparatory  to  continuing  your  actual  business  transactions  and  while  your  teacher 
is  grading  your  books,  you  will  work  out  a  practice  in  the  use  of  the  six-column  journal  taking 
up  the  business  of  C.  W.  Burke  where  it  left  off  when  you  began  working  Actual  Business 
Outline  I.  Note  carefully  the  conditions  of  the  contract  as  stated  in  the  following  Articles  of 
Co-partnership. 


THIS   AGREEMENT,   made  this  23rd   dav  °^  February 

Burke      of       College   City,    Y.    S. 


C.    W. 


V?e3t  Bend,    Y.    S 


A.  D.  191 
Part  y 
Part  y 


by  and  between 

of  the  First  Part,  and  C.     A-      Foley  of 

of  the  Second  Part. 

WITNESSETH.  That  the  said  0-      W-     BurkO  »»*  C     A.      Foloy 

are  desirous  of  forming,  and  have  formed,  a  co-partnership  to  be  known  under  the  firm  name  of 
0-     W.     Burke    &    Co.        that  the  general  nature    of    the    business    Intended    to    be    transacted    Is    a 

Wholesale  Grocery  and  Commission  Buainesa  ;  tiiat  the 

investments  of  the  partners  are  as  follows,  namely      C  .    Vf ,    Burke  P^^ty  of  the 

First  Part  Invests  as        his        Interest  In  the  said  partnership,        his        Present       Worth.      aS 

shown  by  his  statement  of  Resources  and  Liabilities  in  the 
Grocery  Jobbing  Business  on  February  21,  191  ,  which  resources 
hereby  become  the  property  of  the  firm  and  which  liabilities 
are  hereby  assumed  by  the  firm,  making  a  net  investment  of 

Five    thousand  (5000.00)  Dollars,  and  the  said 

C.      A.     Foley  party        of  the  Second  Part  invests  as         hi 8       interest 

in  said  co-partnership,  the  sum  of       Twenty-five  hundred      (2600.00) 
Dollars    in  Gash 

It  Is  further  agreed  by  and  between  the  parties  hereto  that  C.     V^.     Burkd  , 

Party    of  the  First  Part  is  to  have    the  general  management  and   to  do 

the  buying   of  the   said  firm,    giving  thereto  his   full   time 

and    best    judgment  and  receiving  therefor  a  salary 

of  One    hundred        (100,00)  Dollars  per  month,  and  that  the  said 

C-    A.    Foley,  party        of  the  Second  Part,  is  to  be      general   sales  manager 

of    the    firm,     giving    his    full    time    thereto  and  receiving  therefor  a 

salary  of       One    hundred         (100-00)  Dollars  per  month. 

It  is  further  agreed  by  and  between   the  parties  hereto  that  neither  party  is  to  be  permitted  to  witn- 
draw  from  the  funds  of  the  said  co-partnership     more  than         FiVG    hundred        (500.00) 
Dollars  In  any  one  year,  and  that  either  party  withdrawing  money  from  the  co-partnership  shall  pay  interest 
thereon  for  the  time  it  is  so  withdrawn  at  the  rate    of  6%  per  annum. 

It  is  further  agreed  by  and  between  the  parties  of  the  said  co-partnership  that  the  losses  and  gains  of 
this  co-partnership  are  to  be  shared  in  proportion  to  the  respective  investments,  namely: 
C.     W.     Burke,        party         of  the  First  Part,       tvO- thirds    2/3  and 

C.    A.     Foley  .  party         of  the  Second  Part,        one -third    1/3  :  that  a  true 

and  accurate  set  of  books  of  the  business  transactions  of  this  co-partnership  shall  be  kept  by  the  party  of  the 
second  Part  or  under  hi  8  direction  and  shall  be  open  to  inspection  at  any  time  by  either  party,  and 
that  at  the  close  of  each  business  year,  or  on  the  dissolution  of  this  co-partnership,  a  balance  sheet  shall  be  made 
out  and  a  true  and  accurate  statement  of  the  condition  of  the  business  rendered,  and  the  books  closed,  the 
gains  and  losses  being  divided  between  the  partners  in  the  proportion  provided  for  in  this  contract  and  the 
amounts  adjusted  upon  their  respective  stock  accounts. 

In  witness  whereof  we  hereunto  set  our  hands  this    23rd      day  of        February,  191 


'9??./^/.     Q^yj^^n^ 


^Q./rr\^^. 


-) 


nXTifness^s. 


Qc(m.^.u^ 


CAMPBELL'S   ACTUAL   ACCOUNTING  117 

104.  Having  carefully  studied  the  contract  between  the  partners,  give  careful  attention  to 
the  journal  form  in  the  pages  following,  and  observe, 

(a)  That  instead  of  one  debit  and  one  credit  column,  both  on  the  right  side  of  the  page, 
there  are  three  debit  columns  on  the  left  side  of  the  page  and  three  credit  columns  on  the  right 
side; 

(b)  That  all  the  items  of  the  opening  entry  are  placed  in  the  two  Sundries  columns,  that 
they  may  be  at  once  posted  to  the  ledger  to  open  the  accounts; 

(c)  That  in  making  subsequent  entries,  whenever  the  debit  item  is  cash  or  merchandise,  the 
debit  amount  is  placed  in  the  Cash  or  Merchandise  column  on  the  debit  side,  and  whenever  the 
credit  item  is  cash  or  merchandise,  the  credit  amount  is  placed  in  the  Cash  or  Merchandise  column 
on  the  credit  side; 

(d)  That  at  the  foot  of  each  page  the  columns  are  added  and  proved,  the  total  of  the  three 
debit  columns  being  equal  to  the  total  of  the  three  credit  columns,  and  that  when  thus  proved, 
these  footings  are  carried  forward  to  the  top  of  their  respective  columns  on  the  following  page, 
before  making  any  additional  entries. 

(e)  That  the  journal  is  closed  by  ruling  as  shown  at  the  foot  of  the  last  page  of  these  forms, 
the  footings  of  the  special  columns  being  at  that  time  carried  into  the  Sundries  column  and 
posted  thence  to  their  respective  accounts  in  the  ledger,  so  that 

(f)  Only  items  that  are  entered  in  the  Sundries  columns,  and  footings  that  are  brought  into 
it,  are  posted  to  the  ledger ; 

(g)  That  the  addition  of  the  special  columns  footings  to  the  Sundries  columns  footings 
gives  debit  and  credit  totals  that  are  equal,  and  is  presumptive  proof  that  the  special  columns  are 
added  correctly. 

105.  For  section  105  see  pages  118  and  119. 

106.  I.  Take  up  C.  W.  Burke's  journal  and  beginning  at  the  top  of  the  first  page  of  six- 
column  journal  rulings,  make,  under  date  of  February  23,  191 — ,  an  opening^  entry  of  the  exact 
form  presented  in  105  (a)  and  (b),  taking  Mr.  Burke's  resources  and  liabilities  from  the  Re- 
sources and  Liabilities  columns  of  his  balance  sheet  dated  February  21,  191 —  and  taking  as  Mr. 
Foley's  investment  the  draft  on  New  York  for  $2,500  which  you  will  find  in  your  Pad  of  Prepared 
Blanks,  Form  39,  properly  issued  and  endorsed.    A  correct  form  of  the  draft  is  given  below. 


@f rman  AnuMif au  ^ru$t  €ampau^ 


Ho  2Ji^y 


J2^a^es. 


College  Center,  Y.  S.     ^?^le^^.^.g,^g^^^/  19 


C 

VS. 


^    ,  /*^t^.^S^*.t^.y£i^i^^^^^.^.^^,eiC^  ^OL  LARS 

HhiWESTERNlRUST ^Savings  Bank   /       German  /Imenc^o  [rust  Company 


\^9/3]^..^^^^^. 


NEW  YORK.  N.  Y. 


1.  While  an  opening  entry  is  not  necessary  to  the  proper  continuation  of  the  entries  at  this  time,  because 
you  will  continue  to  use  Mr.  Burke's  ledger  which  is  already  opened,  a  form  of  opening  entry  is  here  presented 
for  the  purpose  of  giving  practice  in  making  opening  entries  and  this  plan  will  be  followed  for  the  most  part 
throughout  the  text. 


ii8 


CAMPBELL'S  ACTUAL  ACCOUNTING 


^S^^Z^^^Z^^^^^^lc-i;^  ^^SS^    Q^^!^^'-^^^^^^  2, 


-?/^/- 


CASH 


LF. 


SUNDRIES  MDSE  CASH 


2-^J-iJ 


2.^£iJ^:> 


2  :raa 


JiP^  fi 


//^  -f^ ft) 


tA  :^  ^^'^^^-e^Uf 


r 

7 


2^00 


/a/ 


// 


^■^^5 


/J  ^2  / 


?s 


sTj 


CAMPBELL'S  ACTUAL  ACCOUNTING 


119 


February  27,  19. 


Cash 


Mdse. 


Sundries 


L.F. 


L.F. 


Sundries 


Mdse. 


Cash 


2465     25 


(e) 
(f) 

(g) 
'(h) 

(1) 

((J) 

(k) 


579 
1485 


(1) 
(m) 

(n) 

(0) 

(P) 
(q) 


(r) 
(s) 
(t) 

(u) 


125     00 


242 


55 


jm- 


50 


i 


1000 


3465 


00 


25 


11156     40 
635     211 


100 
25 
50 


15 


31 


2433 
9 


26 
200 


247 


200 


142 


15292 
3465 
2432 


21IM 


00 


73 


V/ 


50 


00 


95 


M 


s/ 


V 


v 


Footings  bro't  forward 

Hanson  &  Co.  Merchandise 

Sales  7.  30d  2/10  C.  1/10  Note 

— Mar.  1 — 
Salaries  Ca^h 

C.  W.  Burke  Paid  sala- 

C.  A.  Foley  ries  for 

T    H.  E.  Student         February 

Cash  Bills  Rec. 

Rec'd  Payment  C.  W.  Moore  Accept 

Cash  Bills  Pay 

Int.  &  Dis. 

Discounted  our  note  at 
60  days  at  bank. 

M.  A.  Birge&Co.       Mdse. 

Returned  two  brls.  Sugar, 
705   lbs.   which  were  damaged  and 
unfit  for  sale. 

M.  A.  Birge  &  Co.    Cash 
Exchange  Mdse.   Disct. 

Remitted  by  N.  Y.   Draft 
for  Inv,  7,  less  credit  for  returned 
goods  and  3%  discount. 


Cons.  No.  1-G.— Frt.  Pd.— Cash 
Cons    No.  1-G.— Dft.  Pd. 

Rec'd  from  J.  F.  Gowdy,  Tar- 
klo,  Mo.,  250  brls.  Apples  to  be 
sold  on  commission  and  paid 
charges  and  draft  for  advance 
as  above. 

— 7— 
Cash  —  Sales  8  —  Consignment"  1 
50  brls.  Jennetings  at  ?2.50 

H.G.Garrow,  Sales  9  Consignment  1 
7.}  brls.  Rom.  $2.40  on  60d  2/10 
25  brls.  Winesaps  $2.70  on  60d  2/10 

— 8— 
Mdse.  Cash 

Bo't  at  special  price 
one  car  load  of  dried  fruit. 

Praisewater    Pro-      Mdse. 
duce  Co.  Ship.  No.  1 

Consigned  to  P,  P.  Co  for 
sale  on  commission,  200  boxes 
Cal.  Prunes,  5,000  lbs,  cost  4c 

Cash 

Cons.  No.  1  H.  G.  Garrow 

H.  G.  Garrow  settles  for 
sale  No.  9,  less  2%  cash  discount. 

Cons.  1,  J.  F.  Gowdy,  Storage  1% 

Guaranty    1% 

'        "         Int.    on    Adv. 

"     "  "        *•        Commiss'n    2% 

Cash-Exch'nge 

'*      "     "  "        "         Cash-Remit. 

Closed  Cons,  and  rendered 
Account  Sales  with  remittance 
by  draft. 

Dr.  Cash         Cr. 

Dr.  Mdse.         Cr. 


V 


V 


^ 


s/ 


V 

V 


13621 
3 


579 
1500 


73 


125 


180 
67 


247 


631  78 


175 


00 


73 


01 


16444 

831 

3914 


21190 


2369 


226 


93 


50 


00 


1000 


00 


200 


50 


142 


54 
89 


S31 


78 


I  3914 


86 


£L 


I20 


CAMPBELL'S   ACTUAL   ACCOUNTING 


Detach  this  draft  from  the  Pad  of  Blanks,  observe  that  it  is  endorsed  payable  to  C.  W,  Burke  & 
Co.,  and  place  it  in  the  firm's  Cash  Envelope  making  entry  as  for  the  investment  of  D.  P.  Pyers 
in  105  (b).   Use  the  Sundries  columns  only  for  all  items  of  the  opening  entry. 

2.  The  opening  entry  proper  being  made,  the  next  step  is  to  make  the  entry  adjusting  a 
special  agreement  between  Mr.  Burke  and  Mr,  Foley  by  which  Mr.  Foley  is  to  share  not  only  the 
future  gains  and  losses  of  the  business  but  is  to  have  a  like  share  of  the  profits  that  have  already 
accumulated  less  $100  which  Mr.  Burke  will  take  as  January  salary.  Make  entry  as  in  105  (c), 
and  draw  the  firm's  check  in  favor  of  C.  W.  Burke  for  the  $100.  Omit  only  one  line  between 
entries  while  using  the  six-column  journal.  This  special  adjustment  being  really  a  part  of  the 
opening  entry,  since  it  reduces  Mr.  Burke's  capital  to  exact  proportions  with  Mr.  Foley's  invest- 
ment, all  the  figures,  including  cash,  will  be  placed  in  the  Sundries  column  and  posted  from  thence. 

3.  February  24,  F.  H.  Burns  remits  in  full  for  the  sale  made  on  the  21st,  by  New  York 
draft  in  favor  of  C.  W.  Burke,  the  form  of  which  is  given  below. 


827 


r%^^^_^^^^^^^  j'^^.v^'^-  -^7^T<f-7^f^/^a — 


at  COLLEGE  CVJUiESCY. 


TosECON 

NEW 


D NATIONAL  BANK.)        ^^^  ^^^^,^^.^. 
W  YORK.  N.  Y.  i  ' 


Cashief 


Detach  this  draft.  Form  40,  from  your  Pad  of  Prepared  Blanks.  Observe  that  by  the  terms  of 
the  sale  F.  H.  Burns  is  entitled  to  a  discount  of  2%,  which  has  been  deducted  from  the  $112.78 
balance  of  account  making  the  amount  remitted  $110.53.  Accompanying  this  remittance  is  a 
letter  similar  to  the  letter  presented  in  64  but  which  is  omitted  from  your  incoming  vouchers  at 
this  time  to  avoid  unnecessary  repetition  of  forms.  Make  entry  and  debit  Cash  in  the  Cash  column, 
and  Mdse.  Discount  in  the  Sundries  column,  then  credit  F.  H.  Burns  in  the  credit  Sundries 
column  and  place  the  draft  in  your  Cash  Envelope.  Explain  entry  carefully.  Now  compare  the 
form  of  this  draft  with  the  one  presented  in  i  above  and  note  that  the  former  is  in  favor  of  the 
partner  and  must  be  endorsed  over  to  the  firm  while  the  latter  is  drawn  directly  in  favor  of  the 
firm.     Both  forms  are  used.     The  former  is  supposed  to  aflford  the  better  receipt  for  the  payment. 

4.  February  26. — Detach  from  your  Pad  of  Prepared  Blanks  form  No.  41  which  you  will 
observe  is  the  invoice  of  Schnull  &  Co.,  Wholesale  Grocers  for  goods  recently  ordered.  Place 
the  proper  memoranda  on  the  invoice  Make  entry;  explain  it  carefully  and  file  the  invoice  for 
future  reference.    Observe  that  the  debit  of  this  entry  is  to  be  placed  in  Merchandise  column. 

5.  February  28. — Detach  from  your  pad  of  Prepared  Blanks  forms  No.  42  and  43.  Observe 
that  42  is  an  order  from  Anderson  &  Anderson  for  a  large  quantity  of  sugar  and  that  43  is  C.  W. 
Burke's  draft  drawn  February  21st  for  balance  of  last  sale,  duly  accepted. 

(a)  Fill  in  the  barrel  weights,  total  pounds,  prices,  and  extensions  of  the  order  as  in  the 
first  item  of  order  in  60  (b)  except  that  the  enumeration  of  barrel  weights  will  take  several  lines 
and  will  therefore  necessitate  entering  all  this  memoranda  at  the  foot  of  the  order  letter  instead 


CAMPBELL'S  ACTUAL  ACCOUNTING 


121 


of  in  connection  with  the  item  ordered  as  has  been  our  habit.  Sec.  62.  Firms  often  receive  orders 
on  postal  cards  and  in  a  great  variety  of  letter  forms  and  must  adapt  their  billing  and  shipping 
memoranda  to  the  circumstances.  Route  this  order  by  Monon  &  Burlington  Freight  as  in  ship- 
ment of  February  21,  in  62,  (a).  For  general  instructions  for  the  routing  of  goods,  see  107.  To 
obtain  the  weight  of  these  barrels,  take  the  figures  from  the  first  40  barrels'  weight  of  the  invoice 
of  Schnull  &  Co.,  7-S,  making  the  term  s^ds,  2-ioc,  i-io,  ^od.-note  6%,  and  charging  the  sugar 
at  $4.95  net.     You  will  also  charge  cartage  on  this  sale,  50c  per  ton,  see  105  (e). 

(b)  File  the  order  in  your  voucher  file  numbering  it  8  and  deliver  the  bill  into  the  Vouchers 
for  Others  Envelope.  In  making  entry  refer  to  the  Order  by  sales  number  instead  of  itemizing. 
See  105  (e)« 

(c)  Before  placing  the  draft  in  your  cash  drawer  make  a  careful  record  of  it  in  your  bill 
book,  opening  at  the  first  double  page  of  the  Bills  Receivable  side  of  the  book  where  you  copied 
all  the  records  shown  in  text  book  as  required  in  69  (c).  Then  record  this  acceptance  of  Ander- 
son &  Anderson  as  the  acceptance  of  McConnell  &  Co.,  No.  2  in  the  bill  book,  is  recorded. 

(d)  While  you  have  the  bill  book  before  you,  you  will  now  turn  to  the  Bills  Payable  side  and 
see  that  on  the  first  pair  of  pages  therein  you  have  copied  the  record  of  notes  payable  shown  in 
the  text  book  in  68,  as  required  in  69  (c). 

6.  March  i. — Take  from  your  pad  of  Prepared  Blanks  form  No.  44  which  you  will  observe 
is  your  bank's  signature  card.  Fill  it  out  with  the  new  firm  signature,  C.  W.  Burke  &  Co.  (per 
your  own  name).  Next  take  from  your  Cash  Drawer  the  check  received  from  F.  H.  Burns  on 
February  21,  and  the  draft  received  on  the  24th,  the  draft  of  C.  A.  Foley  for  $2,500  and  the 
acceptance  just  received  from  Anderson  &  Anderson,  and  prepare  to  deposit  them  in  the  bank. 
Observe, 

ist.  that  the  check  and  draft  of  the  F.  H. 
Burns  and  the  Anderson  acceptance  are  in  favor 
of  C.  W.  Burke,  and  endorse  each  of  these  first 
with  the  name,  C.  W.  Burke,  just  as  it  appears 
on  the  face  of  the  paper,  then  beneath  the  en- 
dorsement, write  the  new  firm  name,  "C.  W. 
Burke  &  Co.,"  per  your  own  name.  The  draft  of 
C.  A.  Foley,  being  endorsed  in  favor  of  the  new 
firm  by  Mr.  Foley,  will  need  only  the  endorse- 
ment, C.  W.  Burke  &  Co.,  per  your  own  name. 
The  acceptance  of  Anderson  &  Anderson  will 
need  the  same  endorsement  as  the  check  of  F.  H. 
Burns,  and  as  it  is  not  cash  it  will  be  put  into  the 
bank  by  "discounting"  it,  that  is,  selling  it  to  the 
bank  at  a  discount.  Its  time  to  run  being  30  ds. 
from  date  of  acceptance,  February  25,  it  will  be 
due  March  27th  and  the  bank  will  discount  it 
for  26  days  at  6%,  $3.74.  List  this  as  shown  in  the 
attached  form  of  deposit  ticket.  Remember  that 
the  discounting  of  Anderson  &  Anderson's  ac- 
ceptance will  require  a  formal  entry  debiting 
Cash  for  the  amount  of  credit  allowed  at  the  bank 
and  Interest  and  Discount  for  the  discount,  and 
crediting  Bills  Receivable  for  the  face.  Make  also 
B.  B.  record  in  collection  data. 


Garden  City  Bank 


OePOSITEO  BY 


College  City.^  /^^tSlr^,  /, 191 

PLEASE    LIST   EACH  CHECK   SEPARATELY 


Currency 

Silver 

Gold 


CHECKS^  AS   FOLLOWS: 


r^^iz-g^^ 


,A/V  <^^  2./^^ 


/r^^^ 


S3 


37^ 

Total,  $ 


ssya^(^ 


122  CAMPBELL'S   ACTUAL   ACCOUNTING 

7.  (a)  Draw  the  firm's  check  for  the  payment  of  rent,  signing  the  check  with  the  new  firm 
signature.  Enter  the  debit  in  the  Sundry  column  and  the  credit  in  the  Cash  column.  Place  the 
check  mark  (V)  in  the  posting  column  opposite  the  entry.  Cash,  to  indicate  that  it  is  not  to  be 
posted  as  a  separate  item  and  if  you  have  not  hitherto  done  this,  as  per  illustration  in  105  (d)  of 
the  journal,  go  back  over  your  journal  work  and  place  similar  check  marks  opposite  each  item  of 
cash  or  merchandise,  that  is,  each  item  that  is  not  placed  in  the  sundry  column. 

(b)  Draw  a  second  check  in  favor  of  Cash  for  $175,  to  pay  salaries  and  make  entry  as 
shown  in  105  (f).  Observe  that  in  posting  this  entry  all  the  debit  items  go  to  Salaries,  but 
separately  in  order  that  they  may  stand  itemized  in  this  account. 

(c)  Detach  from  your  Prepared  Blanks  Form  45,  water  bill,  and  pay  it  in  currency  from 
your  cash  drawer. 

8.  March  3. — Detach  from  your  pad  of  Prepared  Blanks  form  No.  46,  observing  that  it  is 
a  check  from  McConnell  &  Co.,  in  payment  of  their  acceptance  for  $648.47,  and  make  entry,  debit- 
ing Cash  and  creditmg  Bills  Receivable.  Explain  the  entry  carefully,  then  turn  to  your  bill  book 
recently  copied  from  your  text,  and  observe  the  record  which  shows  that  you  have  received  and 
hold  such  paper.  Complete  the  record  by  writing,  in  the  Collection  Data  columns,  a  full  record 
of  the  amount,  manner  and  date  of  payment  with  the  page  of  the  journal  entry  in  the  C.  B. 
column.     See  memoranda  for  note  No.  3. 

9.  March  5. — Detach  from  your  Prepared  Blanks  form  No.  47,  observing  that  it  is  a  note  by 
Anderson  &  Anderson  in  settlement  of  the  sale  made  to  them  on  February  28  less  1%.  Make 
entry,  observing  that  all  items  are  entered  in  the  Sundry  column,  there  being  neither  cash  nor 
merchandise  in  this  transaction.  Place  the  note  in  your  cash  drawer,  first  turning  to  your  bill  book 
and  making  therein  a  complete  record  of  the  note,  similar  to  the  records  already  made  for  other 
notes  received. 

10.  March  6. — Detach  from  your  Prepared  Blanks  form  No.  48,  a  second  invoice  from 
Schnull  &  Co.  Place  filing  data  on  the  invoice  and  make  entry  as  for  former  invoices  received. 
Observe  that  the  terms  of  this  bill  allow  you  a  3%  discount  for  cash  within  10  days.  Desiring 
to  take  advantage  of  this  discount  and  not  wishing  to  allow  your  bank  balance  to  be  less  than 
$2,500  at  this  time  in  the  month  you  note  that  the  balance  of  your  cash  account  will  not  allow  you 
to  do  this  and  meet  other  obligations  that  are  maturing  (see  note  favor  Armour  &  Co.,  in  your  bill 
book  or  in  68),  hence  you  make  arrangements  with  the  bank  to  borrow  $500,  giving  your  note  at 
60  days  without  interest  for  the  amount.  Draw  up  a  joint  and  several  note  (see  55  (c)  for  form)  in 
favor  of  your  bank  and  sign  it  with  the  firm  name  per  your  own.  Since  banks  usually  require  two 
signatures  as  indicated  by  this  form  of  note  you  may  ask  your  teacher  to  sign  the  note  with  you. 
Next  make  a  record  of  this  note  in  your  Bills  Payable  book,  then  go  to  your  teacher  taking  with 
you  your  bank  envelope  and  pass  book,  that  he  may  make  the  proper  entry  of  the  deposit  as  banker. 
If  your  teacher  has  directed  that  you  go  to  the  College  bank  for  this  work  instead  of  to  him,  do  so. 
Observe  that  the  credit  given  you  in  your  pass  book  for  this  note  is  $495,  or  the  face  of  the  note 
less  interest  for  60  days  at  6%,  and  make  entry  in  check  book  for  this  amount  as  you  would  for  a 
deposit.  The  explanation  on  the  left  hand  stub  being  Discounted  our  note  at  6od,  for  $300  less 
discount  $3,  $495.  Then  make  entry  in  your  journal  debiting  Cash  for  the  $495  in  the  Cash 
column  and  Interest  and  Discount  in  the  Sundry  column  for  $5,  and  crediting  Bills  Payable  in 
the  credit  Sundry  column  for  the  full  amount  of  the  note,  $500.    See  similar  entry  in  105  (h). 

12.  March  10. — Two  barrels,  705  pounds,  of  the  sugar  included  in  your  second  invoice  from 
Schnull  &  Co.,  Invoice  No.  8-S,  is  reported  damaged,  and  you  will  write  the  company  stating  the 
facts  and  billing  it  back  to  them  with  the  statement  that  you  have  charged  it  to  their  account  and 
hold  it  subject  to  their  instructions,  requesting  that  they  credit  your  account  for  the  amount. 


CAMPBELL'S   ACTUAL   ACCOUNTING 


123 


13.  Detach  from  your  pad  of  Prepared  Blanks  Form  50,  which  you  will  observe  is  a  no- 
tice from  the  Corn  Exchange  Bank  that  they  hold  for  collection  your  note  in  favor  of  Armour  & 
Co.  due  as  per  your  bill  book.  Draw  the  firm's  check  in  favor  of  Corn  Exchange  Bank,  Chicago, 
for  the  amount  of  the  note.  Take  this  check  to  your  teacher  with  your  Vouchers  for  Others 
envelope  and  ask  him  to  receipt  the  note  and  return  it  to  you. 

14.  March  13th.  Detach  from  your  pad  of  Prepared  Blanks,  Form  51,  which  you  will  ob- 
serve is  another  notice,  from  your  bank.  F.  H.  Burns,  of  Girard,  has  shipped  you  for  sale  on 
commission  a  quantity  of  butter  and  eggs  out  of  an  overstock,  as  per  the  Invoice  of  Shipment 
following.  Form  52,  which  you  will  detach  from  your  Prepared  Blanks  and  keep  before  you  while 
making  entries. 

(a)      Form  52. 


Form  52. 


RECEIVED 

ENTERED     .     

NO    AND  FILE  LETTER 


19. 


F.  H.lBURNS 


OlR^RD,   Y.  S.,- 


PP^^^f/J. 10 1 


INVOICE    OF"   MERCHANDISE 


ADDRBSS 


SHIPPED    BY_ 


BE    SOLO    POH 


ACCOUNT    AND    RISK      OF 


.OONSIQNORS 


/^TV 


--^^^     <^^8.^c-^^-l^J6 


'^^ 


Z£^ 


^r^J^y.  r^ 


(b)  The  consignor  has  drawn  on  you  through  the  State  Bank  of  Girard  for  an  advance  of 
$300  on  account  of  this  shipment,  and  the  State  Bank  of  Girard  has  forwarded  the  draft  to 
your  bank  for  collection,  as  stated  in  the  notice,Form  51.  The  draft  is  secured  by  the  bill  of 
lading  (the  R.  R.  Co.'s  shipping  receipt  for  the  consignment).  Draw  the  firm's  check  in  favor 
of  your  bank  for  $300,  the  amount  of  the  draft  as  per  your  notice.  Deliver  this  into  the  Bank 
Envelope  and  detach  from  Prepared  Blanks  the  receipted  draft  Form  53,  which  having  been  can- 
celled by  the  bank  appears   as   follows : 


IL 
< 

Q 

w 

q: 
u 

o 

I- 

D 
O 


ZC -19 


TO 


Pay  to  the 

^RDER  OF 


IN  COLLEGE  CURRENCY.        " ~""^    ' 


^/^  DOLLARS. 


Place  this  receipted  draft  in  your  Voucher  File,  Envelope  No.  2,  as  a  receipt,  and  detach  Form 
54,  the  Railway  Shipping  Receipt  or  Bill  of  Lading  from  your  Prepared  Blanks.  This  entitles 
you  to  possession  of  the  goods  upon  payment  of  the  freight  charges.    Hand  this  to  the  Carting  Co. 


124 


CAMPBELL'S  ACTUAL  ACCOUNTING 


that  does  your  hauling  by  placing  it  in  Vouchers  for  Others,  and  they  will  advance  the  freight 
charges  and  deliver  the  goods  at  your  store,  presenting  to  you  both  their  bill  and  the  receipted 
Freight  Bill  of  the  R.  R.  Co.    These  bills  are  in  form  as  presented  below. 


Form  55 


Consignee 


C.    W.    Bnrke  &   Co» 


FREIGHT    BILL. 


Pro.. 


Destination 


CoH9g9   City.    Yi    3i 


Ea  COMMERCIAL  COLLEGE 

RAILWAY  COMPANY  fir 


College  City,  Y.  S., mvah  n — 19 — 

Date  of  W.  B. March  11 ^w.  B.  No.  -IMiS 

Car  Initials  Pf    C«    C^    *  g**    I'fCarNo — ^^9944 

Consignor K.    H.    Rprna — ,,, — — 


For  charges  on  articles  way-billed  from. 


Original  point  of  Shipment Girard,    Yt    g. 

flirard.      T.    3. via    St.    L,    &   3.    P.    H,    R. 


Ni  oF  Pkgt. 

ARTICLES   AND  MARKS. 

WEIGHT. 

Rate. 

FREIGHT. 

Advances. 

TOTAL. 

loo 

bxa-    Butter 

looort 

150 

oases    Sggo 

15000 

Z2^ 

65 

00 

22 

13 

77 

18 

Connecting  Line  Reference, 

St.    L. 

Received  Payment, 

Total  to  Collect, 

77 

13 

Original  Way-Bill  Number, 

^^*^<^^^^ 

freight  Cashier."                  Orayage, 

Ol 

173fi9 

^ 

Original  Car, 

P.n.fi.A    nt.T.-449944 

•" 

Original  Paid  Freight  Bills 

should  acconnpanv 

-all  claims  for  Overcharge,  Loss  or  Damage. 

Form  56 


.  -^~^U/  ~7^.^^  ^^.  Vy-  - 


RECEIVED 19 

ENTERED.     ■     ■ 


BRANCH   OFFICE:-  |^, 
-^©NEAR   S.  P   DEPOT .®<^ 

TELEPHONE   N9  783 


Qolle^e  Pi4^,  J^^g^^^l^Xf  1G)^ 


Date 


Pkg8 


Kind 


To 


Weight 


Amount 


/J 


/^-s^^ 

^.^t-^^ 


isi&»-i^ 


Freight 
Total 


/  ZS 


J2. 

advanced — 
to  pay 


<PO 


Detach  these  bills,  Forms  55  and  56,  from  your  Prepared  Blanks  and  draw  the  firm's  check  for 
the  total  amount  of  the  Carting  Co.'s  bill,  observing  that  it  includes  the  advances  for  freight. 
Place  the  check  in  Vouchers  for  Others  and  the  receipted  bills  in  your  Invoice  File  as  instructed 
in  52  (d). 

(c)  Make  separate  entries  for  these  three  payments,— the  draft,  the  freight  bill,  and  the 
cartage  bill,  charging  Consignment  No.  i,  F.  H.  Burns,  with  each,  with  the  proper  explanation,  and 
crediting  Cash.    For  the  form  of  this  entry  see  six-column  journal,  105  (k).   Place  the  usual  filing 


CAMPBELL'S  ACTUAL  ACCOUNTING 


125 


data  in  the  stamped  form  on  the  Invoice  of  Shipment  (detached  Form  52,  numbering  it,  B-p,  then 
before  filing  it  in  the  Invoice  File,  turn  to  your  ledger  and  at  the  top  of  Page  13  open  an  acount 
with  this  consignment,  following  the  form  shown  in  25  following,  both  as  to  the  title  of  the 
account  and  as  to  the  dated  memoranda  of  the  merchandise  received,  taking  all  the  data  from  this 
invoice  (see  first  two  lines  on  debit  side  of  form)  and  posting  nothing  from  the  journal  at  this 
time.  In  advanced  work  the  record  will  go  into  the  loose-leaf  consignment  ledger.  Index  the 
account  at  once. 

15.  March  16. — Bought  today  at  a  special  price  a  car  of  California  dried  fruit  shipped  by  the 
Santa  Clara  County  Fruit  Exchange  to  your  city  for  a  jobber  who  has  been  unable  to  make  pay- 
ment in  advance  as  per  requirements  of  the  sale.  You  are  to  pay  $1,000.  Draw  the  firm's  check 
for  the  amount;  place  it  in  the  Vouchers  for  Others  envelope  and  make  entry  charging  cash  and 
crediting  merchandise,  there  being  no  reason  for  opening  an  account  with  the  Fruit  Exchange. 
(See  105  (n)  for  entry). 

16.  March  21. — Draw  a  sight  draft  on  McConnell  &  Co.,  in  your  favor  for  the  amount  of  the 
sale  made  to  them  on  February  20.  Do  not  make  entry  as  in  53  but  place  this  draft  in  the  bank 
for  collection  as  instructed  for  note  of  J.  C.  D.  &  Co.  in  45  (b).    See  also  53,  Footnote  i. 

17.  March  22. — Detach  from  your  pad  of  Prepared  Blanks  the  checks  represented  by  forms 
Nos.  57,  58,  59,  60,  and  61,  aggregating  $1,660  for  sales  of  dried  fruits  made  to  local  dealers.  Make 
entry  in  your  six-column  journal  debiting  cash  and  crediting  Mdse.  with  the  explanation  Cash 
sales.  (Sec.  17.)  Prepare  a  deposit  ticket  and  deposit  in  the  bank  all  checks  on  hand  endorsing 
each  properly  before  presenting  them  for  deposit.  These  sales  have  been  made  out  of  the  car 
of  California   dried   fruit  which   will  be  classified  Miscellaneous. 

18.  March  23. — There  being  still  a  quantity  of  the  car-load  of  fruit  on  hand  you  will  make 
a  shipment  of  200  boxes  Santa  Clara  Prunes  to  H.  B.  Wellman  &  Co.,  College  Center,  to  be 
sold  for  you  on  commission.  Make  entry  charging  H.  B.  Wellman  &  Co.  Shipment  No.  i  and 
crediting  Merchandise  for  the  estimated  cost  of  the  prunes,  5,000  pounds  at  4c.  Open  an  account 
in  your  ledger  on  Page  14  for  this  shipment  and  index  it  before  proceeding.  For  form  of  this  entry 
see  105   (o).     Now  make  out  the  shipping  invoice   following  the   form  in  a,   above.     Then   take 

Kir  use  In  uonneclion  with  the  Standard  Form  of  Straight  Bill  of  Ladinc  approved  by  the  Intsntata  Commerce  Commiaslon  by  Order  No.  787  of  June  27,  1908. 


COMMERCIAL  COLLEGE  RAILWAY  COMPANY 


THIS  SHIPPING  ORDER  must  be  legibly  filled  in.  in  Ink.  in  Indelible  Pencil,  or  in  Carbon  and  retained  by  the  Agent. 


SUpptr'i  Ro ZSfi- 

Agent's   Ho 


at  College  City,     Mareh  23 /  t91 


HECEIVE,  subject  to  the  classificati**.is  and  Urifts 


n  erlect  on  the  date  of  issu^  of  this  Shippins  OMer. 

From     C,    W.    BURKl  A    COMPAHT 


The  property  described  below,  in  apparent  pood  order,  except  as  noted  (contents  and  eondition  of  contests  of  packa^ps  anlcnownV.  market),  consismed.  and  destined  as  Indicated  below* 
which  said  company  agrees  to  carry  Lo  ita  usual  place  of  delivery  at  said  destination,  if  on  its  road,  otherwise  lo  deliver  to  another  carrier  on  the  route  tu  f  aid  de&iination.  It  is  mu- 
tually aerreed,  as  t^  each  earner  of  alt  or  any  ofaaid  property  overall  or  any  portion  of  aaid  route  to  destination,  an  •  as  to  each  party  nt  any  time  intercste  *  in  all  or  any  of  said  prop- 
erty, that  every  service  to  be  pfrforraed  hereunder  shall  be  subject  to  all  the  conditions,  whether  printed  or  written,  herein  r^n!ainf*d  (including  Conditions  on  back  ber«of)  and 
which  are  agreed  toby  tlie shipper  and  accepted  for  himself  and^biaassigrs. 


The  Rate  of  Freight  from- 
to 

Colloee   Center,    7.    S. 

ia  in  OnU  per  100  the. 

IF  Special 
per 

IF  Special. 

IF..  Times  1st 

IF  1st  Class 

IF  ?d  riasi 

IF  Rule  25 

IF  3d  Class 

IF  Rule  26 

IF  Rule  tS 

IF  4th  Class 

IFSthClBss 

1 F  6th  Class 

per 

18^ 

iMail  Addreas— Not  for  purpuaca  of  Delivery.) 


Consigned   to 5.r._.?-?.....^®.ll5.*?..._*...P..9..t.. 

Destination, .fiftll.ege  _CfiJl.tLe.r- 


-State  of. J.a....S.a County  of. ITV-awa-. 


Eonte, 

_ _ 

...  Car  Initial „ 





Car  No _ - 

No.  Pkgs. 

DESCRIPTION  OF  ARTICLES  AND  SPECIAL  MARKS. 

WGT.-Sub.  to  Cor. 

Claaa  or  Rate 

Check  Col. 

If  charges  are  to  be  prepaid,  writ* 
or  stamp  here,  "To  be  Prepaid." 

200 

Boxes   Santa   Clara  Prunes 

4000 

s 

Received   $ 

to    apply     in     prepayment   of    th 

charges  on  the  property  describek. 

hereon. 

Asent  or  Cashier. 

(Tho  sienature  here  acknowledcea 
only  the  amount  prepaid.) 

Charges  Advanced  : 

$ ^ • 

C.W.Bnrke   A    Co.    ifhipptrt  p«>'-"^^''^V^<^  >-^ 


*Ag«nt  must  detach  and  retain  this  Shipping  Ortfw 
and  must  sign  ths  Original  Bill  of  Lading. 


126 


CAMPBELL'S  ACTUAL  ACCOUNTING 


tTnifOnn  BiU  of  Ladlnc— SUndard  Form  of  Straisht  Bill  of  Lading;  approved  by  th«  Intantato  Commarce  Commiiaion  by  Order  No.  78T  of  Jane  IT,  ItOB. 


COMMERCIAL  COLLEGE  RAILWAY  COMPANY 


B 

STRAIGHT  BILL  OF  LADING— ORIGINAL-NOT  NEGOTIABLE 


Itlpptr't  K.. 

i(tat'i  li- 


ves 


RECEIVED,  Bubject  to  the  clauificationfl  aod  tariffs  in  effect  on  the  date  of  iasue  of  this  Original  BiU  of  Lading. 


atCollege  City,    Jiareh  23,    191 


From    C.    W.    BUHKB  &    COMPANY 


The  property  described  below,  in  apparent  good  order,  except  aa  noted  (contents  and  eoodttkm  of  contests  of  paekages  nnknewn),  marked,  eonsisned.  and  destined  as  indicated  beknr- 
wbich  said  company  agrees  to  carry  to  its  usual  place  of  delivery  at  said  destination,  if  on  its  road,  otherwise  to  deliver  to  another  carrier  on  the  route  to  said  destination.  It  is  ma«' 
taally  agreed,  as  to  each  carrier  of  all  or  any  ofsaid  property  over  all  or  any  portion  of  said  route  to  destination,  anH  as  to  each  party  at  any  time  intereste  1  in  all  or  any  of  said  prop* 
crty,  that  every  service  to  be  performed  hereunder  shall  be  subject  to  all  the  conditions,  whether  printed  or  written,  herein  contained  (including  Conditions  on  back  hereof)  and 
which  are  agreed  to  by  the  shipper  and  accepted  for  himself  and  his  assigns. 
The  Rat.  of  Freight  f«m COHe/f^e      City,      Y.      5. 


to 

Collefre   Cen 

ter.    Y 

.  s. 

la  in  Cents  per 

100  lbs. 

IF... Times  l»t 

IF  l>t  Clus 

IF  2d  Class 

IF  Rule  25 

IF  3d  Class 

IF  Rule  26 

IF  Rule  M 

IF  4th  Class 

IF  Sth  Class 

IF  6tb  Class 

iM 

IF  Special 


ir  Special 


iMail  Address— Not  for  purposes  of  Delivery.) 


Consigned  to.. 
Destination, .... 
Boate, 


Colloge    Center 


-State  of. 


Y.    S. 


Gar  Initial. 


_County  of. V.V.O.y>.M 

Car  No 


200 


DKSCBlPnON  OF  ARTICLES  AND  SPECIAL  MARKS. 


Boxea    Santa  Clara   Prunes 


WGT..Sab.  to  Cor. 


Class  or  Rate    Cheek  Col. 


4000 


If  charges  are  to  be  prepaid,  writ* 
or  stamp  here.  **To  be  Prepaid." 


Received   S ■ 

to  apply  in  prepayment  of*  th 
charges  on  the  property  describe, 
hei-^a. 


Agent  or  Cashier. 


Charges  Advanced: 


O.W.Burl^e  &   Co.  Shippen.  PerJ^7^-?^(?f"  >^ 


fry 


Agent,      Per- 


(TUl  BiU  of  Lading  to  b*  sisaed  by  th.  •hipp.r  and  acaal  of  lb.  .arri.r  iMaia* 


For  use  in  connection  vitb  the  Standard  Form  of  Straisht  Bill  of  Ladins  approval  by  the  Interstate  Conunetee  CoramiMion  by  Order  No,  787  of  Juae  IT.  ISOS. 


COMMERCIAL  COLLEGE  RAILWAY  COMPANY 


THIS  MEMORANDUM  is  an  acknowledmncnt  that  a  bill  of  lading  has  bcc.-^  issued,  and  is  not  the  Oriirinal  BiU  of  Lading. 
coverinK  tho  property  named  herein,  and  is  intenOed  solely  for  filinjr  or  record. 


'  a  copy  cr  duplicate, 


thlpptr't  ll.. 

juieot'i  Ro- 


ves 


RECElVi;i3.  bubjcct  U)  the  classifications  and  tariffs  in  cITccl  on  the  daUj  of  the  receipt  by  tho  carrier  of  the  property  described  in  the  Orisiiml  Bill  of  Ladins, 


atCollege  City,    Uarob  23,    191 


From     C.    W.    BUHKB  &    COUP  ART 


The  property  described  below,  in  apparent  irood  order,  except  as  noted  ( contents  and  condition  of  contents  of  packaena  unknown),  marked,  consiimed,  and  destined  as  indicated  beknr. 
wh;ch  said  company  apices  to  carry  toitsusiiul  place  of  delivery  at  baid  dustiuation,  if  o.i  it.1  rc-ui.  otherwise  lo  deliver  to  another  carrier  on  the  TOUW  lu  baul  destination.  It  is  mu- 
tually atrrced.  as  I  ■  eath  carrier  of  all  or  any  ofsaid  property  overall  or  any  portion  ff  said  route  to  de.'si.nation.  anl  an  to  each  party  at  any  time  inleresle  in  all  or  any  of  said  prop- 
erty, that  every  scnice  to  be  performed  hereunder  shall  be  subject  to  all  tho  condition*,  whether  pnolcd  or  written,  herein  contained  (indudiotr  Ckinditions  on  back  hereof )  and 
which  are  agreed  to  by  the  shipper  and  accepted  for  himself  and  ht3  assij^i  s 

Th.  Rate  of  Freicht  f  ™m COllttge      CltyT      Y.      S. 

to       "         "' 


College    Center,    Y.    8. 


I  C>nta  per  ino  lh«. 


IF..  Timeslstl  IF  1st  Cla 


lFnule2r,    I  IF  M  Cla 


lfi(^ 


I F  .'ith  Claiis      IKKth  Class 


IF  Special 


IF  Special 


tMail  Addrefid — Not  for  purpcea  of  Delivery-) 


CJonsigncd   to .l.l.._?_r._..!?.?J!:.l  9?^  •?..  A....9j>..i.. 

Destination,    ...„ .<LoXle£eL_Con.ter_.. 

Route, _ 


.State  of _!•...  3.._ 

.  Car  Initial. 


JDounty  of VlTOMn.. 

.-...  Car  No _ 


No.  Pkis. 

DESCRIPTION  OF  ARTICLES  AND  SPECIAL  MARKS. 

WGT.-Sub.  to  Cor. 

ClaM  or  Rat« 

Check  CoL 

If  charrres  are  to  be  prepaid,  write 

200 

Boxes    Santa   Clara    Prunes 

4000 

3 

to    apply     in     prepayment   of    th 

chargres  on  the  property  describe, 
hereoa 

Acent  or  Cashier. 
Per                    .        . 

only  the  amount  prepaid.) 

Charges  Advanced  : 

* 

C.W.Bnrke    A    Co.    sVpr"!  Tx^r  ^  ^V^gj^^fc^ 


^}=ry^. 


„Agent,     Per„ 


your  pad  of  Freight  Receipts,  or  Bills  of  Lading,  and  make  out  the  triplicate  forms,  following  the 
forms  marked  A,  B,  and  C,  preceding,  observing  that 


CAMPBELL'S  ACTUAL  ACCOUNTINCx  127 

(a)  The  form,  A,  goes  with  the  goods  to  the  R.  R.  Co.,  and  is  signed  by  the  shipper;  B  and  C 
are  signed  by  both  the  shipper  and  R.  R.  Agent  and  belong  to  the  shipper;  B  is  the  original 
Bill  of  Lading  and  is  the  one  that  is  sent  to  the  consignee  with  the  invoice  (compare  with  Form 
54),  while  C  is  retained  by  the  shipper  for  reference  and  filing. 

(b)  When  you  have  prepared  these  forms  ask  your  teacher  to  sign  as  R.  R.  Agent,  then  place 
form  A  at  once  in  Vouchers  for  Others  to  signify  the  delivery  of  the  goods  to  the  R.  R.  Co. 
Fasten  form  B  to  your  shipping  invoice  just  made  out  and  place  it  also  in  Vouchers  for  Others 
to  signify  mailing  it  to  the  consignee,  then  place  C  in  your  Filing  Envelope  No.  2  as  a  receipt. 

19.  March  24. — The  butter  and  eggs  shipped  by  F.  H.  Burns  have  been  sold  as  follows: 
For  cash  50  crts.         Eggs,         1500  doz.     @     171/^c     to  B.  Elmer  &  Co. 
On  60  da.               75  bxs.  Butter,       7500  lbs.      @     30c         to  Park  Grocery  Co. 
On  60  da.               25  crts.         Eggs,  750  doz.     @     i8c         to  Park  Grocery  Co. 
On  30  da.  2/10     25  bxs.          Butter,       2500  lbs.      @     30c         to  F.  Blackie. 

On  30  da.    2/10     75  crts.         Eggs,         2250  doz.     @     I7^c     to  F.  Blackie. 
Detach  from  your  pad  of  Prepared  Blanks  Form  62,  a  check  received  from  sale  to  B.  Elmer 
&  Co.     Make  entry  for  this  check  and  the  sale  for  which  it  pays  in  one  entry  as  in  105  (1).   Then 
make  entry  for  each  of  the  other  items  of  sale  separately   and  explain   fully.     Place   the   cash   in 
your  cash  envelope.    Observe  the  separate  credits  in  the  form  of  entry  presented  in  105  (m). 

20.  March  28. — F.  Blackie  settles  in  full  for  his  purchase  less  2%.  Detach  his  check.  Form 
63,  from  your  pad  of  Prepared  Blanks;  place  it  in  your  cash  envelope  and  make  entry  as  in  105 
(p),  payment  of  H.  G.  Garrow  for  consignment  goods.  Observe  that  this  discount  is  not  your 
loss  and  must  be  charged  to  the  consignment. 

21.  Detach  from  your  pad  of  Prepared  Blanks  Forms  64  and  65  observing  that  they  are  the 
account  sales  from  H.  B.  Wellman  &  Co.,  for  the  prunes  recently  consigned  to  them  to  sell, 
with  their  check  for  the  amount.  Make  entry  debiting  Cash  and  crediting,  H.  B.  Wdlman  &  Co. 
Shipment  No.  i.  Place  the  check  in  the  cash  drawer  and  file  the  Account  Sales,  placing  it  in  En- 
velope No.  2.    The  form  of  Account  Sales  is  shown  on  page  128. 

22.  Add  your  journal  columns  in  pencil  and  prove  that  the  sum  of  the  three  debit  columns 
equals  the  sum  of  the  three  credit  columns,  then  post  to  the  ledger  all  the  items  in  the  two 
Sundries  columns,  first  observing  how  consignment  items  are  posted.    See  25. 

23.  Now,  without  posting  either  Cash  or  Merchandise  columns,  prove  your  cash  on  scratch 
paper  as  follows :  Take  first  the  total  debit  of  cash  posted  to  your  ledger  from  the  Sundries 
columns  (this  should  be  only  the  cash  items  of  the  opening  entries)  and  add  to  this  the  penciled 
footing  of  the  debit  Cash  column  of  the  journal.  This  should  give  the  total  cash  debit.  Find  the 
cash  credit  in  the  same  way ;  the  difference  between  the  debit  and  credit  thus  found  should  equal 
the  cash  on  hand  and  in  your  bank,  as  in  other  proofs.  As  soon  as  your  Cash  proves,  make  your 
bank  deposit,  depositing  all  checks,  bank  drafts,  and  currency  on  hand — everything  that  has 
been  entered  as  cash.  Prepare  your  deposit  ticket  carefully  and  be  particular  to  see  that  all 
checks  and  drafts  are  properly  endorsed.     See  17  and  18. 

24.  When  Cash  proves,  take  a  trial  balance  or  rather  an  abstract  of  the  accounts  in  your 
ledger  taking  carefully  all  the  penciled  footings  of  each  account  both  debit  and  credit.  This 
abstract  of  your  ledger  will  not  balance,  but  the  difference  between  the  footings  should  equal 
the  difference  between  the  footings  of  the  Sundries  columns  in  the  journal  and  when  it  does  this, 
your  ledger  is  correct,  if  your  journal  balances,  and  this  proof  is  in  every  way  equal  to  that  of  a 
trial  balance.  You  are  not  instructed  to  rule  and  close  the  journal  and  post  Cash  and  Mdse.  at 
this  time  because  there  is  to  be  one  additional  transaction,  the  settlement  of  the  F.  H.  Burns  con- 
signment; and  yet  at  this  time  and  at  all  times  when  consignments  are  to  be  settled,  we  must 
know  that  our  ledger  accounts  are  correct.  Never  settle  a  consignment  account  from  an  unbal- 
anced ledger. 


128 


CAMPBELL'S  ACTUAL  ACCOUNTING 


J^/4LES  OF  yVI ERCHAISDISE 

On  account  ^f  7^^:^^^^^^^^^^^^!^^^^  V^^^^ 

^^     "  ^  WELLMAN  fif  CO. 


Inroice  Mo. 


.9^^^ 


necvirva. 
fnroice  Date, 


OMMiSSPilaNMER^HANTS 


College  Center,  Y.  5^.  "^^^^^.^j^\9 


( 

Received              J^^^X^:^      ^^^yy^^,^^^ ^    y>^^^...^^^^    ^^^^^ 

• 

CHARGES                                                                                                             SALF.S 

^?^?iZ^A 

^^ 

Freifht  or  RinrKu 

y^ 

23 

y^a 

//^^/OTi^gkf  ^^>a/^}^   ^^^--^^^  -7^/' 

.^5^^ 

?-^ 

7"i/ 

Cartifc 

/ 

^■(7 

(^^ 



//yy    ,,           ^oai>(    .^a^     ^d^ 

%C 

T-f 

^ 

^2 

//?'D- 

_ 

<^/i   X.     y  Xaoj^   ^a^  Si'^,f. 

^7 

* 

O^ 

Slot If p 

-<^C<i<s^«-4^«z<»r.,^kZ^/A^ 

/ 

^^ 

Total  Soiling  Fxppnsc 

/a 

,-57^ 

Net  Prnppprls  rRnl.) 

7 

.-r^ 

Total  SalM 

3  oC 

* 

2-S^^ 

.-r^? 

iK 

■2-y 

7-r*^ 

.r?7 

/ 

nriifl 

T-fi"^ 

^CJ 

* 

t 

*  The  form  of  account  sales  presented  above  and  followed  in  general  in  this  text  book,  while  radically 
differing  from  anything  heretofore  presented  in  a  college  text,  has  the  advantage  of  the  endorsement  of  every 
business  man  to  whom  it  has  been  submitted  for  criticism,  and  the  support  of  the  practice  of  a  great  many 
who  have  never  seen  it,  yet  whose  practice  has  in  part  suggested  it.  The  plan  of  excluding  advances,  inter- 
est on  advances  and  similar  charges  against  consignments  from  the  total  selling  expense,  while  endorsed  by 
all  commission  accountants  and  practiced  by  the  larger  and  more  important  commission  merchants,  is  not  fol- 
lowed in  any  other  text  that  has  come  under  the  author's  knowledge.     The  method  of  ijaralleling  the  charges 


CAMPBELL'S  ACTUAL  ACCOUNTING 


129 


25.  When  your  books  are  posted  and  proved  as  above,  turn  to  the  account  w^ith  Consign- 
ment No.  I,  F.  H.  Burns;  it  should  appear  in  your  ledger  itemized  and  explained  exactly  as  fol- 
lows.    If  it  does  not,  you  are  in  error.     Make  your  work  correct  on  this  point  before  proceeding. 


^^^:^r*^^^^^ 


<^^^ 


/3 
/3 

y3 


3 
3 


77 


/J 
ff 


^Z^ 
.Z^ 


^Cy 


^ 


>j^5;L^  — 


^ 
V 


/^ 


«^^c3^^ 


/3a 
y5^c 


it 


26.  In  the  above  account  you  will  note  that  150  crts.  of  eggs  and  100  bxs.  of  butter  were 
received  and  that  the  same  quantities  of  each  have  been  sold  showing  that  the  entire  con- 
signment has  been  disposed  of  and  that  you  are  ready  to  render  an  account  sales.  Take  an  account 
sales  blank  and  copy  thereon  all  of  the  items  posted  above,  in  their  proper  places,  as  shown  in  the 
account  sales  rendered  you  by  H.  B.  Wellman  &  Co.  Check  the  items  thus  copied  as  the  same 
items  are  checked  in  the  account  sales  of  H.  B.  Wellman  &  Co.  Then  proceed  to  enter  on  the 
account  sales  blank.  Storage  at  ic  per  box  or  crate  per  week,  $3.29;  guaranty  at  1%  on  $2,385.00 
not  yet  collected,  $23.85 ;  interest  on  $380.38  advanced  for  draft  and  freight  payment,  18  days  at 
6%,  $1.14,  and  interest  on  $2,385,  the  amount  of  the  sale  to  the  Park  Grocery  Co.  on  60 
days,  for  the  53  days  between  this  date  and  maturity,  $21.06,  making  a  total  of  $22.22.  Lastly, 
charge  commission  on  the  total  sales,  $3,796.88@2%,  $75.93.  Adding  these  total  charges  and 
deducting  from  the  total  sales  you  have  the  amount  of  the  remittance,  which  you  may  write  in 
the  line  marked  Net  Proceeds.  Draw  the  firm's  check  in  favor  of  F.  H.  Burns  for  $3,291.23  net 
proceeds  and  place  it  in  Envelope  No.  5,  then  enter  in  your  journal  these  items  newly  placed  on 
your  account  sales  (you  will  distinguish  them  from  the  others  by  the  check  marks  placed  against 
the  others)  following  the  form  of  entry  presented  in  105  (q),  except  that  you  will  have  no  item 
of  exchange  since  you  make  remittance  in  this  instance  by  your  own  check.  Explain  the  entry 
fully  as  shown  in  105  (q). 

27.  March  31. — Post  the  entries  made  in  the  Sundry  columns  since  last  posting.  Add  all 
columns  in  pencil  and  since  you  have  proved  Cash  in  23  above,  you  will  now  rule  the  six-column 
journal  as  shown  in  the  form  in  105  (r)  and  bringing  the  footings  of  the  special  columns  into  the 
Sundries  columns  as  in  105  (s)  and  (t),  you  will  post  the  footings  of  merchandise  and  cash  to  their 
respective  accounts  in  the  ledger,  and  will  rule,  foot  and  double  rule  the  journal  as  in  105  (u). 
Rule  and  close  Cash  in  the  ledger  and  take  the  usual  trial  balance  of  the  face  of  the  ledger  (pen- 
cil footings,  except  cash  which  should  show  only  the  balance  brought  down),  then  proceed  to 
copy  on  a  page  of  journal  paper  (and  to  work  out  as  indicated)  the  following.  Inventory  of  Mer- 
chandise. 


and  sales  in  center  columns,  and  yet  not  using  the  debit  column  wholly  for  debits  below  the  point  where  the 
consignment  proper  is  balanced  and  the  Net  Proceeds  "brought  down"  (on  the  wrong  side  from  the  standpoint 
of  formal  bookkeeping),  has  received  universal  commendation,  in  that  it  permits  a  larger  use  of  the  sales  col- 
umn, permits  carrying  forward  sales  to  additional  sheets,  to  any  extent  whatever,  and  yet  shows  the  set- 
tlement of  the  entire  consignment  on  the  sheet  on  which  the  receiving  record  is  made.  Observe  that  the  sales 
column  is  not  footed  to  avoid  giving  the  student  a  positive  copy  or  form.  The  footing  may  immediately  follow 
the  items,  or  if  the  items  be  few,  may  be  placed  opposite  the  debit  Total  Sales  item,  or  if  the  sales  side  be  full 
or  should  run  over  to  a  second  sheet,  it  will  properly  come  at  the  foot  of  the  sales  items. 


I30 


CAMPBELL'S  ACTUAL  ACCOUNTING 


26 


INVENTORY  OP  MERCHANDISE,  March  31,  191 


Plllsbury'B  Plour 


225 
16 

186 
Total  Inventory,  Departme 
Granulated  Sugar    26463 
Total  inventory,  Departme 
Eng.  Break.  Tea       240 
Uncolored  Jap.  Tea    180 
Inventory  of  Tea  Depar 
50 
2u0 
50 

loo 

10 

20 

25 

20 

425 


brl8. 


5  00 
5  75 
5  50 


nt  B  • 
lbs. 
nt  G  . 
lbs. 

n 

tment 
doz. 


4  5u 


Star  Sliced  Bacon 

V3  Corned  Beof 

VB  Roast  Be-ef 

VB  Corned    Beef   Ilash 

VB   Chicken   Loaf 

VB  Roast   Button 

VB   Bnls.    Pigs   Peot 

Columbia   Bologna 

Star   Hams  425    lbs. 

Inventory  of  Leats,    Dep»t 

Total    Inventory,    Department   D   • 

Apples,    Roman   Beauty, 100   brls. 
"  Jennetings,         70      " 

Total    Inventory,    Department   ]2  • 

Glassware,    Tumblers  2   gross 

Bellshaped   Tumbler82        •• 
Wines  1        •• 

Saucer    Champ.  4         •• 

Hdld.    Lemonades       1    2/3    •• 

Total    Inventory,    Department   P    . 

Total    value   of   Kerchandise    in 


33  l/3;f 
33  1/3/ 
D 

2 

1 

1 

1 

1 

1 

1 

2 

12  1/2^ 
D    -    -    - 


45 
70 
70 
65 
80 
80 
65 
00 


2  40 

3  00 

8  55 

9  30 
13  50 
20  25 
32  40 

all    Departments 


29.  Other  Inventories:  Observe  that  this  being  the  end  of  the  month,  there  is  no  resource 
inventory  for  unused  rent  in  the  Expense  account,  but  that  there  is  a  liabilities  inventory  for  the 
water  rent  for  March  the  bill  for  which  will  not  come  in  until  the  ist.  Also  in  Salaries  you  will 
find  a  liabilities  inventory  as  in  77  (b). 

30.  Before  proceeding  to  make  out  a  balance  sheet,  you  should  prove  the  accuracy  of  the 
merchandise  transactions  as  far  as  possible.  Turning  to  the  Merchandise  account  in  the  ledger, 
you  observe  that  it  appears  in  debit  and  credit  items  as  follows : 


^ 


'c?^^^/ 


l^J 


^2^' 


^7 


^^.ii^;^i;^i4H^ 


^ 


-<v 


^ 


3L.*-  ri  /*v 


Observe  that  on  the  credit  side  there  are  two  items  that  were  entered  in  the  sundries  column 
and  posted  separately,  both  of  them  because  they  are  not  regular  sales,  the  first  being  returned 
merchandise  and  the  second  a  quantity  of  goods  consigned  to  a  commission  merchant  and  charged 
to  the  shipment  at  cost.  Note  carefully  how  these  figures  are  handled  in  working  out  the  Expert 
Report  on  the  page  following. 

(a)  The  inventory  that  appears  at  the  head  of  the  debit  column  is  entered  on  line  i  in  the 
Totals  column  and  distributed  into  the  Class  or  department  columns  exactly  as  it  appears  in 
the  Inventory  line  of  the  proof  shown  in  76  (a)  at  the  time  of  Mr.  Burke's  previous  closing  on 
February  21. 


CAMPBELL'S  ACTUAL  ACCOUNTING 


131 


(b)  The  purchases  of  merchandise  as  shown  by  the  debit  ledger  footing  are  next  dis- 
tributed to  their  respective  classes.  The  purchases  of  sugar  being  a  regular  transaction  are 
assigned  to  Class  C,  and  the  car  load  of  dried  fruit  being  a  lump  purchase  and  being  sold  without 
any  fixed  per  cent,  of  profit  is  assigned  to  Class  A,  Miscellaneous.  To  this  class  also  we  will 
assign  the  returned  merchandise.  We  have  already  assigned  the  shipment  to  this  class  as  it  is 
included  in  the  carload  of  dried  fruit  of  which  it  was  a  part.  To  this  class  also  may  at  any  time 
be  assigned  goods  sold  at  cost  to  partners  or  to  employees,  the  cost  amounts  of  the  classes  from 
which  these  goods  were  sold  being  reduced  correspondingly.  Or  a  separate  column  may  (if 
deemed  more  convenient)  be  used  for  goods  sold  at  cost  or  returned,  on  which  there  would  be 
no  profit,  and  another  for  goods  on  which  there  is  no  regular  per  cent,  of  profit.  The  ingenious 
student  should  be  able  to  work  out  many  of  these  situations  for  himself  thereby  developing  his 
ability  to  originate  plans  of  proof  when  thrown  on  his  own  resources. 

The  feature  of  loading  for  expenses  not  having  entered  into  our  plans  in  this  Practice, 
no  figures  appear  in  that  line. 

(c)  Adding  all  numbers"  in  each  column  gives  on  Line  4,  the  Total  cost  of  goods,  both  as  a 
whole  and  by  departments. 

On  Line  5,  is  entered  the  present  inventory  by  departments.  Observe  that  there  has  been 
no  change  in  inventory  except  in  Class  C,  and  in  the  Total  column. 

(d)  To  add  the  per  cent,  of  profit  it  becomes  necessary  so  far  as  Class  A  is  concerned  to 
see  what  the  Class  A  goods  sold  for.  This  in  a  classified  or  department  business  would  be  done 
in  advance  through  a  special  column  salesbook.  As  you  have  not  yet  advanced  to  the  use  of  such 
books,  you  will  need  to  pick  out  the  sales  of  these  goods  from  among  your  other  sales.  As  there 
has  been  but  one  sale  of  other  goods  considered  in  this  practice,  you  may  easily  obtain  the  amount 
for  which  these  Class  A  goods  sold  by  taking  the  difference  between  the  sale  of  Class  C 
goods  and  the  total  sales,  which  gives  $1,891.73  and  taking  the  difference  between  this  sum  and 
the  Cost  of  Goods  Sold  in  Class  A,  gives  a  profit  of  $860.  Enter  this  on  Line  7.  Then  compute 
the  profit  on  Class  C  goods  at  10%  of  the  cost  figures  on  Line  6  and  carry  the  sum  of  these 
profits  into  the  Totals  column  on  the  same  line. 

The  rest  of  the  work  is  as  in  other  Expert  reports  and  will  be  easily  followed  by  the  student 
as  he  studies  the  report  itself,  as  shown  below. 


— 

II 

Expert  Report  on  business 

Totals 

Class  A 

Miscellaneous 
No  Fued 
Per  Cent. 

Class  B 

Flour 

Listed  to  Sell  at 

S» 

Profit 

Class  C 

Sugar 

Listed  to  Sell  at 

10» 

Profit 

Class  D 

Smoked  and 

Canned  Meats 

and  Tea 

20«  Profit 

Class  E 

Fralts 

and  Other  Goods 

In  Bulk 

16HlPTOfK 

Class  P 

Glassware 

Listed  to  Sell  at 

IU« 

Profit 

(\\<^^/.^^^.AA^.Vif^ 

Inventories, 
Purchases,  Etc. 

Pate  ■^y^.^.^i^  .^/   19 

? 

<? 

,? 

C 

(>/ 

?. 

? 

/:/ 

(? 

2. 

(1 

f^-? 

/ 

/? 

Y 

ff 

^f 

=/ 

^ 

<? 

/ 

r 

Y 

ifi 

2.     Add  purchases  of   merchandise 

. 

r 

■?- 

4' 

/T 

^ 

^ 

3 

/ 

.7,? 

/ 

7 

(T 

2. 

V^c 

3.    Add  loading  (or  expense 

/ 

' 

4.    Gives  lolal  cost 

c 

■f 

Vn 

(? 

/r 

/ 

(? 

9 

/ 

r,? 

:2 

2. 

Y 

(^ 

/ 

r 

/ 

^ 

?^ 

/ 

r? 

4^ 

<i 

r^r 

^ 

s 

<f 

. 

/ 

^ 

4^ 

3-^ 

'5.     Deduct  present  inventory 

£_ 

/ 
A 

^ 

.•*■ 

<PX 

> 

?. 

^ 

{} 

/ 

/ 

^ 

ff 

^f 

<7 

(^ 

i7 

f^<? 

¥ 

^ 

(p 

_ 

/ 

y 

y 

?-a 

6-     Gives  cost  o\  goods  sold 

/ 

r< 

,f 

^ 

7{'n 

^ 

<7 

? 

/ 

VL? 

Cn 

r- 

2. 

S-9 

/ 

7.     Add  percent   of  profit 

a 

2 

^ 

7-f 

/ 

^O 

f 

2 

i^ 

S.     Sales  should  be 

'i. 

r 

r 

^ 

s/ 

/ 

r 

'^ 

f 

7,? 

<^ 

f 

'^ 

rrP 

9      Sales  per  ledger  are     . 

^ 

.f 

T 

i, 

,r/ 

It 

'^ 

( 

7i? 

r^ 

r 

^ 

rf 

10.    Line    8  from  9  shows  error*     - 

, 

Une  S  Icii  iine  6  thowi  wbal 

r? 

7 

p. 

2.? 

^ 

'^ 

fP 

_ 

^ 

7- 

7-^ 

Ijne  9.  l«ii  Unc  6  abowi  wlui 

■7 

? 

? 

7-1 

rP 

^ 

(^ 

_ 

^ 

7 

f-^ 

lJiKl2lCTi"liiieI>rt,owi 

14.      Errors      .... 

■ 

— 

J— 

- 

— 

— 

— 

— 

-L 

— 

— 

— 

■A 

132 


CAMPBELL'S  ACTUAL  ACCOUNTING 


31.  Proceed  to  make  out  a  balance  sheet  as  instructed  in  78  to  81,  except  that  the  distribu- 
tion of  loss  or  gain  will  be  between  two  partners  instead  of  one,  and  will  alter  the  closing  of 
the  Balance  Sheet  as  instructed  in  81,  as  follows: 

(a)  First,  prove  the  footings  of  all  columns  as  in  79  (m)  ;  then  find  the  difference  between 
the  footings  of  the  Losses  and  Gains  columns,  and  dividing  it  by  three,  separate  it  into  two  parts, 
two-thirds  of  it  belonging  to  Mr.  Burke  and  one-third  to  C.  A.  Foley  and  make  two  red  ink  entries 
to  close  the  columns  as  in  the  form  below. 

(b)  Second,  bring  down  separately  each  partner's  net  credit  and  add  thereto  his  share  of 
the  gain,  extending  the  total  into  the  Liabilities  column  as  shown  in  the  form. 

(c)  Form  for  Closing  Balance  Sheet  in  a  Partnership.  (Compare  this  with  the  closing  of  the 
balance  sheet  in  80.  Observe  that  this  does  not  form  a  key  to  your  present  work,  but  only  a  form 
for  illustration.) 

i— 


(f^^- 


l£^tt 


/a-^ffz 


_A^g 


/'/.^jcr.f  ^ 


y/^^-9'^ 


2.//ilrt7 


^7//*'^ 


v?Vz/4^ 


//■r^-Yvi. 


(d)  Proceed  to  close  your  ledger  carefully  following  in  general  the  instructions  in  82  to 
84  but  closing  the  Loss  and  Gain  account  with  two  red  ink  entries,  one  for  the  amount  of  each 
partner's  gain,  as  shown  in  the  Losses  and  Gains  columns  of  your  balance  sheet,  and  transferr- 
ing each  to  the  respective  partner's  account,  as  you  did  the  gain  of  Mr.  Burke  in  the  former 
closing. 

(e)  After  closing  the  ledger  take  a  second  trial  balance  to  prove  that  yoiir  closing  has  been 
done  correctly,  being  careful  to  take  into  this  balance  only  the  pencil  footings  of  accounts  that 
have  not  been  closed  and  where  an  account  has  been  closed,  only  the  figures  that  have  been 
brought  down  below  the  double  closing  lines.  Then  make  out  a  Business  Statement,  or  Analytical 
Balance  Sheet,  in  the  form  shown  in  86  except  the  Distribution  of  Gain  which  will  be  as  follows: 

(f)  Business  Statement  of  C.  W.  Burke  &  Co.,  March  31,  191. . 


DISPOSITIOH   OF  GAIU.- 


C.  W.  Btirke's  Net    lnvostment» 

M  »•  •»  i»      Gain,-    Ti»o    thirds    of   total   gain, 

•»  ♦♦  •»  Present  Worth, 

C.  A.  Foley^s  Investment, 

H  »  H  Ket    Gain*-    One    third   of   total   gain, 

«  tt  M  Present   Worth, 

Present  Worth  6f  C.   W.    Burke  and  Company, 


5000 
492 

00 

61 

5492 
2746 

2500 
246 

00 

31 

61 

81 

8296 

92 

(g)  Lastly  make  out  the  following  form  of  report  on  a  regular  blank  and  copy  it  neatly 
into  the  form  following  for  your  teacher's  acceptance.  There  being  but  two  departments  of 
goods  in  which  any  business  was  done,  Miscellaneous  Class  A  may  be  entered  as  Department  A 
and  all  the  others  may  be  added  together  and  included  in  Department  E.  It  will  make  a  difference 
in  the  inventory  figures  only. 


CAMPBELL'S  ACTUAL  ACCOUNTING 
REPORT 

Report  of  School  Duties.'     I  take  bookkeeping Hours  a  day. 

Hours  worked  since  last  report ,  Absent Total No.  of  Letters  written 

No.  of  Invoices  bo't  of  wholesale  houses 

No.  of  payments  made  in  cash ;   in  notes ;   in  acceptances ;     Total 

No.  of  Payments  rec'd  in  cash ;   in  notes ;    in    acceptances ;    Total 

No.  of  Entries  made Average  per  hour Time  on  trial  balance. hours. 


133 


NOTES 


Bills  Receivable,  Ledger  Balance 

Total  uncollected  in  bill  book 

Total  value  of  notes  in  the  safe . 

Bills  Payable,  Ledger  Balance 

Total  unpaid  in  bill  book 


CASH 


Ledger  Balance 

In  bank,  Stb.  No.. 
In  safe,  Currency 
In  safe.  Checks,  _ 


Total  Cash  on  hand. 


MERCHANDISE 

Department  A 
Goods 

Department  E 
Qoods 

TEACHER'S  MARKING 

Cost  of  Mdse.  bought 

Accuracy 

Neatness 

Orderliness 

3 

2 
2 

2 

1 

Present  inventory 

Cost  of  goods  sold          

Sales  of  merchandise . 

Records 

Progress 

Gain,  red  ink ;  Loss,  black 

Errors:  Ourfvr.red;  cont. black 

Average 



TEACHER'S 


Respectfully  submitted. 


.191. 


STAMP 


107.     General  Directions  in  Regard  to  the  Acknowledgment  and  the  Shipment  of  Orders. 

One  of  the  most  perplexing  and  yet  apparently  simple  matters  that  the  business  college 
graduate  or  under  graduate  has  to  face  when  taking  up  a  position  in  the  billing  and  shipping 
department  of  any  establishment,  is  the  routing  of  shipments.  Probably  very  few  competent 
students  would  be  guilty  of  the  blunder  made  by  a  shipping  clerk  in  one  of  the  large  printing 
establishments  of  Cincinnati,  when  he  sent  a  large  quantity  of  freight  to  Philadelphia  by  the  Big 
Four,  all  the  other  important  railroads  of  the  country  going  out  from  the  point  of  shipment,  but 
in  a  multitude  of  cases  in  which  the  situation  is  not  so  clear,  the  beginner  will  be  honestly  puzzled, 
if,  as  is  the  fact  in  many  cases,  a  number  of  different  railroads  radiate  from  the  point  of  shipment. 
Whether  to  send  a  parcel  by  mail,  express,  or  freight  is  perhaps  a  first  question  to  be  decided.  If 
by  express,  the  question,  by  what  company.  Often  the  same  point  is  reached  by  two  or  three 
express  companies,  usually  at  the  same  cost,  in  which  the  one  giving  the  quickest  service  would 
be  chosen.  The  same  questions  arise  in  freight  shipments,  and  while  much  of  the  knowledge 
necessary  to  become  expert  at  such  work  tan  only  be  obtained  in  actual  office  experience,  a  few 
suggestions  are  deemed  in  place,  and  very  valuable  training  may  be  given  to  the  student  by  any 
teacher  who,  having  secured  a  copy  of  the  Shipper's  Guide  and  a  good  railroad  map  for  students' 
use  will  give  orally  to  the  student  body  once  or  twice  a  week,  a  few  problems  in  routing  sup- 
posed shipments,  requiring  them  to  write  out  the  proper  memoranda  for  routing  these  supposed 
shipments,  and  then  discussing  and  pointing  out  the  errors  in  their  memoranda  a  day  later. 


134  CAMPBELL'S   ACTUAL  ACCOUNTING 

(a)  When  an  order  is  received  by  the  shipping  clerk,  the  items  should  first  be  checked  and 
prices  and  extensions  made  for  billing.  The  student  has  already  had  practice  in  this  work  with 
illustrations,  in  55,  60  and  62.  In  many  instances,  the  customer  or  the  salesman  will  specify  the 
manner  of  shipment,  and  such  directions  should  always  be  followed  in  every  detail.  If  no 
method  of  shipment  be  designated  in  the  order,  the  clerk  should  take  into  consideration  the  size  of 
the  shipment  and  any  special  conditions  which  might  call  for  prompt  delivery,  and  should  decide 
whether  it  is  to  the  customer's  best  interests  to  forward  by  freight  or  express.  Unless  there  be 
some  special  reason,  either  designated  or  implied,  for  shipping  by  express  or  mail,  the  shipment 
when  it  is  of  fifty  pounds  or  more  weight  should  be  routed  by  freight.  Unless  the  terms  of  the 
order  include  prepaid  delivery,  all  freight  shipments  should  go  forward  collect,  unless  otherwise 
requested.  Upon  smaller  shipments,  inquiry  should  be  made  as  to  the  expense  of  delivery,  and 
where  expense  will  be  saved  for  the  customer  by  prepaying  on  express  shipment,  it  should  be 
prepaid  and  the  amount  included  in  the  invoice. 

(b)  The  manner  of  shipment  being  determined,  the  next  question  which  arises  is  the  rout- 
ing. The  best  assistance  for  the  shipping  clerk  of  which  we  have  any  knowledge  is  the  Shipper's 
Guide,  published  by  The  Shipper's  Guide  Company,  Chicago,  Illinois.  This  guide  gives  in  addi- 
tion to  other  items,  the  following  information, — It  designates  the  railroads  running  through  the 
point  to  which  you  wish  to  make  the  shipment.  It  gives  the  divisions  of  the  railroads,  the 
terminal  points  and  the  mileage.  It  designates  the  Express  Companies  which  operate  upon  the 
different  roads ;  states  whether  there  is  a  post-office  at  the  delivery  point,  whether  it  is  a  money 
order  post-office,  and  whether  the  station  is  what  is  known  as  a  prepaid  station  (has  no  agent)  ; 
gives  information  in  regard  to  telegraph  offices,  rural  deliveries,  etc.  When  the  delivery  point 
is  not  located  upon  a  railroad,  it  will  indicate  the  distance  from  this  point  to  the  nearest  points 
of  shipment. 

(c)  With  the  Shipper's  Guide,  the  shipping  clerk  need  have  no  difficulty  in  the  routing  of 
shipments.  Where  a  great  deal  of  shipping  is  done  by  freight,  it  is  advisable  that  the  shipping 
clerk  have  available  for  ready  reference  complete  railroad  maps  of  the  territory  in  which  the  con- 
cern with  which  he  is  connected  operates.  This  will  be  found  very  valuable  in  instances  where 
the  shipments  have  to  travel  over  two  or  more  railroads  before  they  reach  their  destination,  as  it 
can  be  readily  seen  from  the  map  what  connecting  routes,  as  indicated  by  the  Shipper's  Guide, 
seem  best  adapted  for  prompt  delivery  service. 

(d)  When  an  order  cannot  be  shipped  on  the  day  it  is  received,  an  acknowledgment  of  the 
receipt  of  the  order  should  go  that  day  to  the  customer,  giving  the  reason  for  the  delay  and  stating 
the  time  when  shipment  will  be  made. 

(e)  Since  the  express  companies  compete  closely  with  the  mail  service  in  the  matter  of 
expense  of  transportation  of  parcels  above  a  certain  weight,  and  since  the  express  company 
guarantees  the  safe  delivery  of  the  parcels  to  the  extent  of  the  valuation  at  which  it  is  appraised 
when  shipped,  shippers  generally  give  express  companies  preference  over  the  mail  service  except 
in  the  case  of  small  parcels  costing  not  to  exceed  10  or  15c  for  transportation,  or  in  the  case 
of  parcels  sent  across  the  international  boundary  lines,  when  the  mail  service  is  always  preferred 
when  possible  to  use  it,  since  it  avoids  the  special  manifest  in  triplicate  required  by  custom 
house  officials. 

(f)  Following  is  a  form  of  Certified  Invoice  of  merchandise  for  shipment  to  Cuba,  prepared 
for  this  text  in  the  office  of  the  Van  Camp  Packing  Co.,  Indianapolis. 


CAMPBELL'S   ACTUAL  ACCOUNTING 


135 


The  Van  Camp  Packing  Co. 

INDIANAPOUS.  IND 


SOLD  TO      JOHN   SMITH  &   SON 
Address     WAVANA,    CUBA 
Ship  To       SAME 

BUYER'S    No. 


Date  jan    30,    1911. 

Terms      gg  Qp^ys 

Cash  CKsa  I  1-2  Pen  Ccnt  Tcn  Oav* 

C.I  .F.    HAVANA 
Freight  PREPAID 
V'^ UNION    LINE    TO  NEW   YORK, 


UNITS 


PRICE 


EXTENSIONS 


23  C3   TALL   SIZE   MILK 

10  OS   #1  PORK  «   BEANS  T.S. 

ZO  CS   #2  PORK  &   BEANS  PLAIN 


23  4.10  102.50 
40  .82^  33.00 
40     1.25       50.00     185.50 


DECLARO   QUE   SOY    EL   FABRlCANTE    DE    US   MERCANCIAS   RELACIONADAS 
EN   LA   PRESENTE    FACTURA   Y   QUE    SON   CIERTOS   LOS   PREClOS   Y    OEMAS 
PARTICULARES   QUE    EN    ELLA   SE   CONSIGNAN   Y   QUE    LAS   MERCANCIAS 
CONTENIDAS   EN   DICHA    FACTURA    SON  PRODUCTOS    DEL   SUELO  0   I^E 
LA    INDUSTRIA   UE   LOS   EST ADOS  UN  I  DOS   DE  AMERICA, 


DECLARO  QUE   SOY   EL   AGENTE     AUTORIZADO  POR..... 

QUE  HA"  SUSCRITO  LA  ANTERIOR  DECLARACION  PARA  PRESENTAR  ESTA 
FACTURA  EN  LA  OFICINA  CONSULAR  DE  CUBA  EN  ESTA  PLAZA,  A  FIN 
OE  QUE    SEA   CERTIFICADA. 


CDAftANTCC.    (;uada  .m  lhi>  intoiec  ut  tiiaranlaeJ  linJcr  the  Food  >nd  Urogi  Acl  ol  June  JOlh,  IW6. 

CAUTION.  Oon'MllDo  rtwr  new  Mooka  lo  be  lUokMl  on  top  ol  old  alack.  Keep  rour  atocka  revcraed  au  tkai  your  uldeal  ilooOa  trill 
«l».r>  «o  tnil  irai.  Tkia  will  wvc  r«H  ipo!li|c  in  (ll  clsaaca  of  (oed>  and  uve  rou  trouble  under  chM(ea  in  Pure  Food  l.*n  rulinta  m 
•II  eleaaet  o(  fooda. 


136  CAMPBELL'S  ACTUAL  ACCOUNTING 


OUTLINE  II. 

General  Note — At  the  foot  of  every  page  of  the  six-column  journal,  add  columns,  prove  the  footings  as  in 
104  (c)  and  carry  the  footings  forward  to  the  top  of  the  respective  columns  on  the  following  page. 

108.  I  Your  work  throughout  this  outline  is  to  be  a  partnership,  but  in  order  that  you 
may  have  merchandise  on  hand  for  sales  when  you  are  ready  for  business,  you  will,  before  pro- 
ceeding to  organize  your  partnership,  place  orders  for  merchandise  with  the  firms  with  whom  you 
have  been  dealing.  Make  these  orders  as  near  to  the  limit  of  their  respective  price  lists  as  the 
condition  of  your  bank  account  will  permit,  and  write  with  each  order  a  neat  business  letter 
stating  that  the  growth  of  your  business  is  necessitating  larger  orders  and  requesting  their  prompt 
attention  and  early  shipment.  Ask  them  to  bill  the  goods  as  usual  on  60  days.  If  you  owe  any  of 
these  companies  for  former  orders,  remit  by  check,  as  instructed  in  108,  11  (a),  but  make  no  entry 
until  you  have  worked  to  paragraph  11. 

2.  Consult  your  teacher  and  secure  a  partner  for  your  business  who  will  invest  some  pro- 
portionate part  of  your  present  capital,  from  1/5  or  1/6  to  1/2.  This  partner  may  either  be  your 
teacher  or  some  student  whom  he  may  select  or  to  whom  he  may  refer  you,  leaving  you  to  con- 
duct the  negotiations.  Draw  up  your  partnership  contract  similar  to  the  one  drawn  in  your 
practice  in  104,  observing  that  the  principal  difference  between  the  two  contracts  lies  in  the 
names,  amounts  and  date  and  that  in  this  you  are  the  party  of  the  first  part  and  the  larger  in- 
vestor. Your  firm  name  should  be  your  own  name  &  Company  unless  that  would  make  two 
firms  of  the  same  name  in  the  schoolroom,  in  which  case  you  may  prefix  your  initials  to  the  firm 
name  or  consult  your  teacher  in  regard  to  some  other  form  of  firm  name.  Draw  this  partnership 
contract  in  duplicate,  one  copy  for  each  partner.  Fold  your  own  copy,  noting  on  the  back  the 
names  of  the  parties  and  the  date  in  the  blanks  prepared  for  that  purpose,  and  file  it  in  your  Filing 
Case,  Compartment  No.  i.  The  other  copy  you  will  hand  to  your  teacher,  who  will  file  it  with 
your  other  reference  papers.  Understand  that  these  papers  become  a  part  of  the  record  you  are 
making,  and  do  your  work  carefully  and  neatly. 

3.  Make  an  opening  entry  at  the  top  of  the  first  blank  page  of  your  six-column  journal  in 
form  similar  to  the  opening  entry  made  in  your  last  practice  or  the  form  presented  in  105  (a)  and 
(b).  Open  your  partner's  ledger  account  on  page  2  of  your  ledger,  and  index  it  at  once.  Having 
secured  an  enlargement  of  your  storeroom  your  rent  has  been  advanced  to  $100  per  month. 
Note  the  amount  of  rent  to  be  paid,  and  the  proportionate  shares  of  the  partners  in  the  opening 
entry,  for  your  future  information. 

4.  Draw  a  check  in  favor  of,  "Ourselves"^ 
foJ*  $355-35  preparatory  to  drawing  the  cash 
from  the  bank.  See  section  52,  (b).  Then  en- 
dorse your  check  with  your  firm  name  across 
the  back  about  one  inch  from  the  left  end  and 
present  it  to  the  cashier  of  the  bank  with  a 
memorandum  of  change  wanted  exactly  like  the 
memorandum  in  the  margin  which  you  will 
copy  on  a  blank  ticket.  Make  no  entry  for  this 
transaction.    Why  not? 

5.  Using  part  of  the  cash  obtained  in  4,  pay  your  rent  for  one  month  in  advance  at  the  Real 
Estate  Office  or  at  the  teacher's  desk  and  take  a  receipt  for  payment.  See  91,  3,  for  full  instruc- 
tions. Make  entry  as  in  your  practice.  Observe  that  you  were  directed  not  to  make  an  entry 
for  the  transaction  in  4  above.    The  reason  is  that  no  business  was  done;  cashing  the  check  was 

1.     This  term   "Ourselves"   is  used    instead   of   your  firm   name  and   is   a  usual   form   in   either  drafts  or 
checks  made  in  favor  of  the  drawer,  when  the  drawer  is  a  firm. 


No. 

of 

Denom- 

Pieces 

ination 

Amount 

3 

$100 

$300.00 

1 

60 

60.00 

2 

2 

4.00 

1 

1 

1.00 

1 

26^ 

.26 

1 

10^ 

.  10 

9 

$366.36 

CAMPBELL'S  ACTUAL  ACCOUNTING 


137 


merely  taking  your  money  out  of  one  place  and  putting  it  into  another — taking  some  of  it  out 
of  the  bank  and  putting  it  into  your  safe  for  future  use.  This  payment  for  rent  is  the  first  use 
made  of  any  of  it. 

6.  Order  from  the  College  Center  Office  Supply  Co.  the  safe  illustrated  in  their  catalog  as 
"K,  price  $150."  Request  this  Company  also,  if  it  is  not  an  imposition  or  too  much  out  of  their 
line  of  business,  to  purchase  and  ship  to  you  a  good  reliable  horse  and  a  first-class  wagon  and 
harness,  provided  they  can  find  a  satisfactory  outfit  at  from  $350  to  $400.  Ask  them  to  ship  via 
the  Y.  S.  Central  R.  R.  Co.,  and  state  that  you  will  pay  cash  on  receipt  of  bill.  Present  this  letter 
to  your  teacher  for  approval  before  mailing;  but  before  going  to  your  teacher,  if  the  merchan- 
dise recently  ordered  from  the  wholesale  houses  has  arrived, — 

7.  Prepare  the  required  number  of  customers'  orders  and  take  them  with  you  to  your 
teacher  for  approval  when  you  present  the  letter,  written  as  instructed  in  6. 

8.  Fill  the  orders  approved  by  your  teacher,  accompanying  one  invoice  with  a  draft  drawn 
in  favor  of  "Ourselves"  at  30  days'  sight,  and  another  with  a  joint  note  at  30  days,  making  the 
amounts  of  the  draft  and  note  each  1%  less  than  the  respective  invoices.  The  form  of  this  note 
should  be  as  shown  below.     It  is  to  be  signed  by  two  persons  or  firms. 


9.  Make  entry  for  all  invoices  of  goods  that  have  been  received  since  the  close  of  your  last 
actual  business  work.  These  should  combine  easily  and  neatly  in  one  entry.  See  16,  Foot- 
note I. 

10.  Make  entry  for  all  payments  of  accounts  that  have  been  received  since  last  actual  busi- 
ness work  whether  these  payments  have  been  made  in  cash  or  by  note  or  by  acceptance,  being 
careful  to  distinguish  between  payment  of  accounts  and  payment  of  notes  or  drafts.  Observe 
that  when  an  account  is  paid  you  debit  Cash  (or  Bills  Receivable  if  you  receive  a  note  or  draft) 
and  credit  the  payer  by  name ;  but  that  when  payment  is  received  for  a  note  which  you  hold,  you 
debit  Cash  (or  Bills  Receivable  if  a  new  note  be  given)  and  credit  Bills  Receivable,  crediting 
Interest  and  Discount  for  the  difference  in  case  the  payment  be  larger  than  the  face  of  the  note 
or  draft.  Make  record  in  bill  book  for  all  notes.  Take  from  your  file  of  Unentered  Business,  at 
this  time,  the  voucher  check  prepared  as  instructed  in  102,  7  and  10,  and  make  entry  charging 
Cash,  then  place  this  voucher  check  in  the  cash  drawer  ready  for  deposit  with  other  checks. 

11.  Make  payment  for  invoices  received  according  to  the  terms  of  the  invoice,  first,  signing 
notes  or  accepting  drafts  that  have  been  sent  out  with  the  bills,  and  second,  taking  up  the  pay- 
ments on  which  you  are  permitted  to  choose  your  form  of  payment. 

(a)  Your  wholesale  bills  belong  to  this  latter  class  and  there  being  in  each  case  a  liberal 
discount  for  cash,  pay  these  in  cash  less  the  discount,  remitting  in  each  case  by  letter.  If  these 
payments  were  included  with  the  order  placed  in  108,  i,  make  the  entries  now. 


138  CAMPBELL'S  ACTUAL  ACCOUNTING 

(b)  For  at  least  half  of  the  bills  which  you  have  received  from  students  give  notes  at  60 
days  and  let  the  remaining  bills  stand  on  account  for  later  settlement. 

12.  Place  an  order  for  dried  fruits  with  the  River  Dale  Fruit  Co.,  through  their  College 
Center  branch ;  also  place  an  order  for  Apples,  Barley,  Potatoes,  Lemons,  and  Oranges  with  the 
Harmer  Produce  Co.,  asking  them  to  allow  you  to  open  an  account  on  60  days'  time  and  giving 
references,  as  in  the  case  of  your  first  order  from  the  houses  with  which  you  have  been  dealing. 
See  91,  4,  (c)  for  instructions  concerning  this  type  of  letter.  Make  the  size  of  these  orders  close 
to  the  limit  in  the  respective  price-lists  of  the  companies. 

13.  Detach  from  your  Prepared  Blanks,  Forms  66  and  67,  observing  that  they  are  letter  and 
invoice  in  reply  to  your  order  in  108,  6.  Fill  in^  your  own  name  where  indicated  and  supply  the 
date,  making  it  one  or  two  days  earlier  than  the  present  date.  Write  a  reply  to  the  letter  en- 
closing your  check  for  the  net  amount  of  the  bill,  and  make  entry  charging  the  safe  to  Office 
Furniture  and  the  horse  and  wagon  to  Chattels.  Deliver  your  letter  with  enclosed  check  to 
your  teacher,  then  file  the  company's  letter  in  your  letter  file,  and  the  invoice  with  your  other 
Expense  Bills,  marking  it  Expense  Bill  No.  —  Make  this  number  consecutive  with  other 
Expense  Bills. 

14.  Detach  from  Prepared  Blanks  Forms  68  and  69,  observing  that  they  consist  of  Freight 
and  Cartage  bills  and  the  tickets  representing  the  articles  just  bought  from  the  Office  Supply  Co. 
Observe  also  that  the  freight  bill  is  receipted  and  that  the  bill  of  the  carting  company  includes 
that  item  which  indicates  that  they  have  advanced  the  freight  charges  and  that  you  are  to  pay 
them.  Draw  your  check  for  the  amount  and  pay  at  the  general  offices  of  the  Freight  Co.,  or  to 
your  teacher  if  so  instructed.    Make  entry,  charging     this     entire     bill     to     Freight,     explaining 

Expense  Bill  No. ,  and  carrying  this  explanation  to  the  ledger  when  posting.    Observe  that 

although  you  have  a  Cartage  account,  the  Transfer  Co.'s  bill  is  not  charged  to  it.  That  is  an 
account  that  is  to  show  credit  when  you  charge  others  for  the  delivery  of  goods.  Now  that 
you  own  your  delivery  wagon,  you  will  charge  cartage  at  50c  per  ton  on  all  Department  E  goods 
sold  during  this  outline.  Pay  at  this  time  the  freight  bills  in  your  wholesale  invoices.  See  91,  5, 
sixth. 

15.  Post  as  in  106,  22,  and  make  daily  closing  as  in  91,  11,  that  is,  prove  cash  and  Bills 
Receivable  and  Payable  and  take  a  trial  balance.  Then  make  your  bank  deposit,  carefully  pre- 
paring your  deposit  ticket  according  to  18  and  entering  a  copy  of  the  ticket  on  the  back  of  your 
check  stubs,  then  extending  the  amount  into  the  check-book  money  column  as  a  deposit.  See 
deposit  of  February  11,  in  66  (b).  Lastly,  prepare  your  customers'  orders  for  your  next  day's 
business  and  submit  them  to  your  teacher  for  approval,  arranged  as  instructed  in  98  (except 
Expert  Report)^  with  copy  of  the  daily  report,  neatly  entered  in  the  form  below,  and  a  duplicate 
copy  for  teacher's  files. 

REPORT 
Report  of  School  Duties:    I  take  bookkeeping Hours  a  day. 

Hours  worked  since  last  report ,  Absent Total No.  of  Letters  written _ 

No.  of  Invoices  bo't  of  wholesale  houses Of  students ,   Total 

No.  of  Payments  made  in  cash ;   in  notes ;    in    acceptances ;    Total _ 

No.  of  Payments  rec'd  in  cash ;   in  notes ;    in    acceptances ;     Total — 

No.  of  Sales  made:     To  T.   &   T.  Co ;    to  students ;  Total  No ,  $ „ 

No.  of  Entries  made Average   per  hour Time  on  trial  balance hours. 

1.  Rather  than  attempt  to  reproduce  in  the  schoolroom  all  the  accessories  of  the  business  life,  making 
what  hard-headed  business  men  call  a  "Business  Playhouse,"  it  has  been  deemed  advantageous  to  introduce 
certain  features  by  means  of  prepared  vouchers  and  transactions  with  fictitious  persons.  The  student  will, 
however,  readily  see  the  advantage  that  he  has  in  handling,  for  the  major  part  of  his  course,  papers  that  come 
to  him  fully  made  out  and  naturally  presented,  as  compared  with  any  so-called  "actual  business"  course 
in  which  all  his  work  is  from  illustrative,  half  made  out,  fictitious  vouchers. 

2.  The  Expert  Report  and  full  proof  of  a  student's  work  will  be  made  only  at  the  close  of  an  Outline, 
unless  otherwise  ordered  by  the  teacher. 


CAMPBELL'S  ACTUAL  ACCOUNTING 


139 


NOTES 


Bills  Receivable,  Ledger  Balance 

Total  uncollected  in  bill  book 

Total  value  of  notes  in  the  safe 

Bills  Payable,  Ledger  Balance 

Total  unpaid  in  bill  book 


CASH 


Ledger  Balance 

In  bank,  Stb.  No.. 
In  safe,  Currency 
In  safe,  Checks,  _ 


Total  Cash  on  hand. 


Respectfully  submitted, 


TEACHERS 


191 ... .  STAMP 

109.  I.  Fill  the  orders  approved  by  your  teacher.  Make  the  terms  of  your  sales,  50  days, 
2/10  c.  1/ 10  n.  or  ac,  sending  out  with  one  of  your  bills  a  joint  and  several  note  making  the  note 
for  the  net  amount  of  the  bill  less  3  per  cent,  payable  at  your  bank  in  30  days,  with  "interest 
after  maturity."  You  will  not  allow  the  special  discount  of  one  per  cent,  on  this  transaction 
for  the  reason  that  the  note  does  not  bear  interest  until  after  maturity. 

(a)  With  another  bill  send  out  a  draft  drawn  in  favor  of  your  firm  for  the  amount  of  the 
bill  less  one  per  cent,  and  leave  it  with  the  customer  for  his  acceptance  when  you  deliver  the 
goods. 

(b)  For  a  third  bill,  find  one  of  your  customers  who  is  willing  to  pay  "spot  cash"  and 
collect  when  you  deliver  the  goods,  allowing  him  the  special  discount  of  two  per  cent.  Take  the 
check,  or  currency,  received  in  payment  for  this  sale,  directly  to  the  bank  and  exchange  it  for  a 
certificate  of  deposit  in  favor  of  your  firm  which  you  will  place  in  your  cash  drawer.  The  best 
way  to  find  this  customer  is  through  your  purchasing  agent  unless  your  teacher  instructs  other« 
wise. 

(c)  Permit  your  remaining  sales  to  stand  on  account  or  accept  such  payment  as  your  cus- 
tomers see  fit  to  offer. 

2.  Make  entry  for  all  invoices  received  and  unentered  and  proceed  to  pay  for  them  as 
follows : 

(a)  First,  sign  notes  or  accept  drafts  in  all  cases  where  these  have  been  presented  with  the 
bills,  and  make  bill  book  record  and  entry. 

(b)  From  those  in  which  you  have  the  choice  of  manner  of  payment,  select  one  of  the 
smaller  invoices  and  pay  it  by  a  draft  at  30  days,  drawn  on  some  one  of  your  customers  who 
owes  you  that  amount  or  more.  Select  a  second  invoice  and  pay  it  in  the  same  way  by  a  draft 
on  another  customer  who  owes  you,  but  make  this  draft  at  sight  instead  of  at  30  days.  These 
two  payments  introduce  you  to  a  use  of  the  draft  concerning  which  you  have  had  but  little 
previous  instruction.  Draw  these  drafts  similar  to  the  form  in  53,  inserting  the  name  of  your 
creditor  in  each  case  where  the  name  of  the  Garden  City  Bank  appears  in  the  form,  and  making 
as  above  instructed,  one  of  the  drafts  read  at  sight  as  in  the  form,  and  the  other  at  30  days 
sight.  In  making  your  entry  observe  that  these  drafts  are  not  Bills  Receivable  because  there 
is  in  them  no  promise  to  pay  you  (your  firm)  any  money;  that  they  are  not  Bills  Payable,  be- 
cause you  do  not  promise  to  pay  any  one  else  any  money ;  that  they  are  not  Cash  as  was  the 
draft  in  53,  because  they  are  not  in  favor  of  your  bank  and  cannot  be  turned  into  cash  by  you 
at  the  bank.  What  then  are  they?  Observe  that  each  will  take  money  that  is  due  to  you  out  of 
the  account  (the  customer)  on  which  it  is  drawn  and,  since  we  always  credit  the  source  from 
which  the  value  comes,  you  have  discovered  the  proper  credit  for  each  of  these  entries.    Then 


140  CAMPBELL'S  ACTUAL  ACCOUNTING 

when  you  hand  these  drafts  over  to  the  creditors  in  whose  favor  you  have  drawn  them  in  pay- 
ment of  the  invoices  sold  you,  you  will  readily  see  that  these  persons  who  receive  the  drafts  or 
in  whose  favor  the  drafts  are  drawn  are  to  be  debited.     Make  each  entry  separately  and  explain 

Paid  for  Invoice  No. by  draft  at  sight  (or  jo  days)    on   (name  of  drawer).     If   in  doubt 

about  this  entry  make  one  of  the  entries  on  a  loose  sheet  of  journal  paper,  and  submit  it  to  your 
teacher  for  approval.     Then  proceed  to  complete  the  record  as  instructed  above. 

(c)  Of  your  remaining  invoices,  pay  cash  for  those  from  the  wholesale  houses  taking  ad- 
vantage of  the  discount  and  enclosing  your  check  with  the  letter  written  as  in  (6)  below.  For 
the  invoices  from  students,  give  notes  at  ninety  days  for  all  that  allow  you  such  an  option.  Make 
bill  book  record  and  entry. 

3.  Discount  at  your  bank  all  notes  or  acceptances  which  you  hold  that  are  not  due.  Collect 
all  that  are  due  you  with  interest,  or  if  the  maker  be  not  able  to  pay,  insist  that  he  pay  the  interest 
and  renew  the  note.  For  entry  for  payment  of  a  note  and  interest  see  54.  For  payment  of 
interest  alone  you  will  debit  Cash  and  credit  Interest  and  Discount.  Fill  B.  B.  record  in  Collec- 
tion Data  columns. 

4.  Pay  all  your  own  notes  or  acceptances  that  have  matured,  with  accrued  interest,  and  make 
entry,  debiting  Bills  Payable  and  Interest  and  Discount,  and  crediting  Cash.  If  your  cash  balance 
in  the  bank  is  not  large  enough  to  meet  your  requirements,  consult  your  teacher  and  the  banker, 
and  arrange  to  borrow  at  the  bank  what  money  you  need,  giving  the  bank  the  usual  form  of  joint 
and  several  note  signed  by  your  own  firm  name  and  that  of  some  other  student  who  will  sign 
with  you  as  an  endorser.    For  entry  see  106,  10. 

5.  Detach  from  Prepared  Blanks,  Forms  70  and  71,  the  letter  and  shipping  invoice 
from  H.  S.  Tuttle  &  Co.,  College  Park,  Y.  S.,  filling  your  own  name  and  the  date. 
In  supplying  the  date,  antedate  both  the  letter  and  invoice,  also  the  draft  following,  suffi- 
ciently to  allow  for  the  distance  from  the  point  of  shipment  to  your  city.  File  letter  and  invoice 
in  your  filing  case,  first  opening  an  account  in  your  ledger  on  page  23  as  instructed  in  106,  14  (c). 
Then  detach  the  draft  and  freight  bill.  Forms  72  and  73.  Pay  the  draft  at  the  bank,  observing 
first  that  it  is  endorsed  on  the  back  payable  to  your  bank.  If  not  properly  endorsed,  require  the 
banker  to  secure  the  proper  endorsements  before  you  make  payment.  Next,  pay  the  freight  bill 
at  the  freight  office  and  make  entry  as  in  105  (j).i  Lastly,  detach  from  Prepared  Blanks  the 
tickets  that  represent  the  goods  and  place  them  in  a  special  envelope  marked  Consignment  No.  i, 
H.  S.  Tuttle  &  Co.,  College  Park,  Y.  S.  File  the  receipted  draft  and  freight  bill  with  the  letter 
and  invoice,  fastening  all  together  with  a  pin  or  other  fastener.  Place  them  in  your  Invoice 
File.2 

6.  Write  letters  to  the  River  Dale  Fruit  Co.,  and  the  Harmer  Produce  Co.,  enclosing  your 
checks  for  last  orders  less  discount  as  per  instructions  in  2  (c)  above  with  additional  orders  for 
merchandise.  In  the  letter  to  Harmer  Produce  Co.,  suggest  that  the  California  Oranges  were 
not  up  to  the  standard  and  that  if  the  goods  of  this  order  should  prove  equally  inferior  you  will 
be  obliged  to  return  them  as  you  cannot  afford  to  have  dissatisfied  customers. 

7.  Pay  Freight  Bill. 

8.  Make  a  sale  to  the  Townsite  &  Trading  Co.,  of  all  goods  bought  from  students  to  date, 
deducting  21^  %  trade  discount  and  making  the  terms  Net  Cash.  Add  cartage  at  50c  per  ton 
and  make  entry  as  in  105  (e). 

9.  (a)     Add  your  journal  columns  in  pencil  and  prove  your  additions. 

(b)     Prove  cash  by  adding,  on  scratch  pap€r,  the  footing  of  your  debit   cash   column  to 


1.  Observe  that  the  proper  title  for  an  account  with  a  consignment  received,  is,  Consignment  No 

Consignor's  Name,  Address,  numbering  all  consignments  consecutively,  for  convenience  in  stenciling  crates, 
barrels,  etc.,  in  the  warehouse,  while  it  will  be  found  best  in  keeping  accounts  with  consignments  sent  out  to 
give  each  consignee  a  separate  set  of  numbers  and  to  enter  goods  sent  out  on  commission  as,  JoJm  Smith's 
Shipment  (or  Consignment)  No 

2.  Observe  that  the  Order  Bill  of  Lading  is  not  shown.    See  Form  54  in  106,  14,  (b).- 


CAMPBELL'S  ACTUAL  ACCOUNTING  141 

your  last  cash  balance,  and  subtracting  from  the  sum  the  footing  of  your  credit  cash  column. 
The  difference  should  equal  the  total  of  your  cash  on  hand  and  in  the  bank. 

(c)  Post  all  items  in  the  sundries  columns  to  your  ledger  as  in  former  work. 

(d)  Rule  the  columns  of  your  journal  as  illustrated  in  105  (q),  carrying  the  footings  of  the 
cash  and  merchandise  columns  into  the  sundries  column  as  in  (2)  and  (3),  adding  and  ruling  as 
illustrated  in  the  form  Sec.  105.  Then  post  the  items  of  cash  and  merchandise  from  the  sundries 
columns  to  their  respective  accounts  in  the  ledger  the  same  as  other  sundry  items. 

(e)  Prove  Bills  Receivable  and  Payable  as  in  69  (a)  and  (b). 

(f)  Take  a  trial  balance.^  If  your  balance  does  not  prove,  first  try  the  ordinary  methods  of 
finding  a  trial  balance  as  presented  in  71.  If  you  cannot  find  all  errors  in  this  way,  turn  to  72  or 
92,  and  follow  carefully  the  instructions  there  given. 

(g)  Prepare  your  deposit  ticket  as  instructed  in  18;  copy  it  in  the  stub  of  your  check-book 
as  explained  in  18  (b)  and  make  your  bank  deposit,  being  careful  to  endorse  all  checks  18  (c), 
and  to  present  pass  book  with  deposit  ticket  and  checks  to  your  teacher  to  be  "Vised"  before 
going  to  the  bank. 

10.  Take  an  inventory  of  merchandise,  listing  the  goods  of  each  department  separately  and 
discounting  Department  A  goods  at  12I/2  per  cent,  and  Department  E  goods  at  3  per  cent,  to 
find  the  net  cost.     See  section  75,  also  106,  27  and  28. 

11.  Prove  the  accuracy  of  your  work  following  instructions  given  in  95,  and  find  all  errors  as 
instructed  in  96.     See  also  106,  28. 

12.  When  your  merchandise  proves  and  you  have  done  all  the  work  required  in  9  and  10 
above,  make  out  a  balance  sheet  as  instructed  in  107,  and  proceed  to  close  your  books  as  in  the 
Practice  preceding  this  Outline.  In  closing  your  books,  follow  83  in  general,  in  the  matter  of  all 
resources  and  liabilities  accounts,  except  that  you  will  always  rule  your  accounts  with  the 
wholesale  houses  and  the  Townsite  &  Trading  Co.,  at  the  close  of  each  outline  bringing  down 
the  balance  of  each  account  after  closing. 

13.  Your  books  being  now  closed,  take  a  trial  balance  after  closing  (see  86)  to  prove  that 
your  closing  has  been  done  correctly,  and  make  out  statement  as  in  86  appending  to  it  the  trial 
balance  taken  after  closing  the  books.^ 

14.  Prepare  your  orders  from  customers  for  another  day's  work,  subject  to  your  teacher's 
approval,  disposing  of  the  goods  received  on  consignment  from  Tuttle  &  Co.,  to  two  of  these 
customers.  Do  not  at  this  time  mix  any  goods  of  your  own  stock  with  these  consignment  sales 
but  dispose  of  your  own  goods  to  other  customers. 

15.  Place  your  books  in  usual  order  to  submit  to  your  teacher  for  his  approval  and  fill  out 
the  full  report  below  with  a  duplicate  for  the  teacher's  file. 

REPORT 

Report  of  School  Duties:    I  take  bookkeeping Hours  a  day. 

Hours  worked  since  last  report ,  Absent Total No.  of  Letters  written 

No.  of  Invoices  bo't  of  wholesale  houses Of  students ,   Total 

No.  of  Payments  made  in  cash ;   in  notes ;    in    acceptances ;    Total 

No.  of  Payments  rec'd  in  cash ;   in  notes ;    in    acceptances ;     Total 

No.  of  Sales  made:     To  T.   &   T.  Co ;    to  students ;  Total  No ,  $ 

No.  of  Entries  made Average  per  hour Time  on  trial  balance hours. 


1.  This  being  a  general  closing  with  a  proof  of  Merchandise  as  indicated  In  10  below,  the  student  may 
save  time  in  taking  a  second  trial  balance  if  he  work  10  and  11  before  proceeding  with  (f)  and  (g). 

2.  By  comparing  the  trial  balance  taken  after  closing  with  the  resources  and  liabilities  of  the  statement, 
the  student  will  observe  that  the  same  proof  can  be  obtained  by  comparing  (checking)  the  statement  of  re- 
sources and  liabilities  with  the  closed  ledger. 


142 


CAMPBELL'S  ACTUAL  ACCOUNTING 


NOTES 


Bills  Receivable,  Ledger  Balance  , 

Total  uncollected  in  bill  book 

Total  value  of  notes  in  the  safe 

Bills  Payable,  Ledger  Balance 

Total  unpaid  in  bill  book 


CASH 


Ledger  Balance 

In  bank,  Stb.  No.. 
In  safe,  Currency 
In  safe,  Checks,  _ 


Total  Cash  on  hand. 


MERCHANDISE 


Cost  of  Mdse.  bought 

Present  i  nventory 

Cost  of  goods  sold  

Sales  of  merchandise 

Gain,  red  ink ;  Loss,  black 

Errors:  Ourfvr.red;  cont.  black 


Department  A 
Goods 


Department  E 
Goods 


TEACHER'S  MARKING 


Accuracy , . . 
Neatness . . . 
Orderliness. 
Records  . . . . 
Progress. .  . 
Average ... 


TEACHER'S 


Respectfully  submitted, 


191 ... .  STAMP 

no.  I.  Draw  a  check  in  favor  of  each  partner  for  the  amount  of  his  gain  as  carried  to  his 
stock  account  in  the  last  closing-  of  your  books ;  or  if  you  have  been  compelled  to  pass  your 
work  with  a  loss,i  require  each  partner  to  make  up  his  share  of  the  deficiency  in  capital.  For 
your  share  of  this  deficiency  you  may  give  your  note  in  favor  of  the  firm  at  three  months  with 
interest  at  8  per  cent.    Your  partner  will  either  give  a  note  or  pay  cash  as  he  may  see  fit. 

2.  From  this  time  until  you  finish  this  set,  you  will  keep  your  cash  account  in  the  cash 
columns  of  your  journal,  not  transferring  the  footings  to  the  ledger  as  in  the  two  previous  post- 
ings. It  will,  therefore,  be  necessary  for  you  at  this  time  to  transfer  the  balance  of  your  cash 
from  the  ledger  to  the  journal.  This  can  be  done  most  conveniently  by  making,  in  your  six- 
column  journal,  the  following  entry  and  explanation,  using  the  figures  of  your  cash  balance  in 
place  of  the  asterisks. 


«#»* 


y^Z^ 


•  ••» 


Place  the  cash  debit  of  this  entry  in  the  cash  column  where  the  asterisks  appear  in  the  form 
above  and  the  cash  credit  in  the  sundries  column,  and  immediately  post  the  cash  credit  from  the 
sundries  column  to  the  credit  of  the  ledger  account.  Rule  and  foot  the  ledger  account,  as  it 
will  now  balance. 

3.  Fill  the  orders  approved  by  your  teacher  when  your  books  were  accepted,  accompanying 
one  of  the  sales  of  consignment  goods  with  a  draft  at  30  days  less  i  per  cent,  for  the  buyer's 
acceptance.  When  this  draft  is  accepted  and  returned,  see  form  in  105  (o)  for  your  entry,  but 
observe  that  the  principal  debit  is  Bills  Receivable  and  not  Cash.     Make  a  sale  to  T.  &  T.  Co., 

1.  A  loss  in  your  business  can  only  indicate  one  of  two  things,  errors  in  accounting  or  in  making  the 
sales,  or  failing  to  do  business  enough  so  that  the  gains,  which  are  on  a  percentage  basis,  will  overcome  the  fixed 
expenses. 


CAMPBELL'S  ACTUAL  ACCOUNTING 


143 


using  a  voucher  check  as  in  102,  6  and  selling  all  Dep't  E  goods  that  were  included  in  your 
proof  made  in  109,  11.  Remember  that  you  are  to  charge  cartage  on  Dep't  E  goods.  Make  one 
entry  for  the   sale  and  a  second  for  the  voucher  check. 

4.  Make  a  shipment  of  merchandise  out  of  your  wholesale  stock  to  some  student  whose 
name  is  on  your  trading  list  and  who  is  at  least  as  far  along  in  his  school  work  as  the  beginning  of 
Outline  II,  instructing  him  to  sell  these  goods  for  you  on  commission  and  to  render  you  an  ac- 
count sales  with  remittance  at  the  earliest  possible  date.  Write  a  neat  business  letter  embody- 
ing these  instructions  and  submit  it  to  your  teacher  for  approval  before  delivering  it  with  the 
shipping  invoice  (or  the  merchandise^).  For  instructions  in  making  a  shipment  see  106,  18, 
following  plan  of  the  shipment  to  H.  B.  Wellman  &  Company,  as  closely  as  the  freight  regula- 
tions of  your  schoolroom  will  permit;  and  make  entry  as  in  105,  (n). 

5.  Secure  from  some  student  who  is  as  far  along  in  his  work  as  you  are,  a  consignment 
of  merchandise  to  be  sold  by  you  on  commission.  If  you  do  not  know  from  whom  to  obtain  this 
consignment  consult  your  purchasing  agent.  If  some  student  has  already  made  you  a  shipment 
instructing  you  to  sell  for  him  on  commission  it  will  fulfill  this  requirement  and  release  you 
from  securing  another  at  this  time.  Make  a  sale  of  these  consignment  goods  as  in  the  case  of 
consignment  received  from  Tuttle  &  Co.,  in  109,  5,  sent  out  to  customers  on  orders,  109,  13.  This 
consignment  should  be  known  on  your  book  as  Consignment  No.  2,  followed  by  the  name  and 
address  of  the  consignor,  (see  109,  5,  footnote  i),  and  the  ledger  account  should  be  opened 
about  12  lines  below  the  Tuttle  Consignment  on  page  23.  Other  Consignment  accounts  should 
follow. 

6.  Make  entry  for  all  invoices  received  since  last  closing  and  make  payment  in  cash  or 
notes  as  you  may  see  fit  except  as  otherwise  required  by  the  seller.  Pay  freight,  and  make 
entry  as  per  previous  instructions. 

7.  Remit  in  cash  to  your  wholesale  houses  for  the  amount  of  last  invoices  less  discounts 
to  which  you  are  entitled,  and  enclose  with  each  letter  a  new  order  for  merchandise.  These 
letters  will  all  be  similar  in  form ;  and  are  of  a  nature  that  you  should  be  able  to  write  without 
any  special  instructions.  Prepare  them  carefully  and  submit  them  with  other  papers  to  your 
teacher  for  approval  before  delivering.  Do  not  consider  them  unnecessary  because  they  are  alike. 
All  business  firms  write  a  great  many  such  letters  and  your  repeated  practice  should  enable 
you  to  get  very  correct  forms  of  expression. 

8.  To  Prove  and  Rule  Cash  Without  Closing  the  Journal  and  Posting  Merchandise. 

(a)  Add  your  journal  columns  in  pencil  and  prove  that  the  debits  equal  the  credits. 

(b)  Since  all  your  cash  is  to  be  found  in  the  cash  columns  of  the  journal  the  difference  be- 
tween the  debit  and  credit  pencil  footings  of  the  cash  columns  will  show  the  balance  of  cash 
which  you  should  be  able  to  find  in  your  bank  or  cash  drawer.  When  this  proves,  omit  one  line 
from  the  last  entry  in  your  journal  and  make  a  red  ink  balance  entry  as  in  the  form  below.  Rule 
the  cash  column  only,  bringing  down  the  cash  balance,  exactly  as  in  the  form.^ 


yfy^f^ 


4z^g 


<:?y^j/4 


^-^(i^^  26  /a<i^s  'J 


^^2Z-<^<^C^  ^^JW-*^'  j^^^^^'^>-«^«>.»s<t-»?»a^ 


^/^^ 


g'J/^  rj    jy^/f  7/^ 


^7^^ 


Z£ 


1.  Whether  you  will  deliver  the  Merchandise  with  this  Invoice  or  not  depends  entirely  on  the  regula- 
tions of  your  school  concerning  freight  and  express  shipments.  Since  the  consignee  must  pay  freight  in  order 
to  have  the  usual  run  of  entries  on  commission  goods  it  is  very  desirable  that  the  goods  be  delivered  through 
some  transfer  medium,  if  only  the  teacher's  desk.  You  will  then  deliver  only  the  letter,  invoice,  and  bill 
of  lading  and  the  consignee  will  call  at  the  freight  office,  pay  freight  and  get  the  goods. 

2.  Observe  that  the  cash  balance  and  the  penciled  footings  of  the  unruled  columns  are  to  be  added  in  with 
the  new  work  when  it  is  continued. 


144 


CAMPBELL'S  ACTUAL  ACCOUNTING 


9.  Post  all  items  found  in  the  sundry  columns  and  prove  Bills  Receivable  and  Payable. 

10.  Take  a  trial  balance  of  your  ledger,  taking  as  Cash  the  balance  brought  down  in  the 
journal.!  You  should  readily  perceive  that  this  cannot  be  expected  to  balance  as  the  pencil  foot- 
ings of  merchandise  are  not  included,  not  having  been  carried  to  the  ledger.  Do  not  carry 
them  to  the  ledger  at  this  time  but  enter  them  on  a  separate  line  in  your  trial  balance  just  below 
the  other  items ;  then  if  your  ledger  work  is  correct  your  balance  will  prove.  If  not,  find  your 
errors  as  under  former  instructions. 

11.  Secure  your  orders  for  your  next  day's  trading  and  submit  them  with  your  books  to 
your  teacher  in  the  usual  form  for  inspection  (98,  c),  filling  out  teacher's  filing  copy  of  the  ^aily 
report  and  copying  it  neatly  in  the  form  following. 

REPORT 

Report  of  School  Duties:    I  take  bookkeeping Hours  a  day. 

Hours  worked  since  last  report ,  Absent Total No.  of  Letters  written 

No.  of  Invoices  bo't  of  wholesale  houses Of  students ,  Total 

No.  of  Payments  made  in  cash ;  in  notes ;    in    acceptances ;    Total 

No.  of  Payments  rec'd  in  cash ;   in  notes ;    in    acceptances ;     Total 

No.  of  Sales  made:     To  T.   &  T.  Co ;    to  students ;  Total  No ,  $ 

No.  of  Entries  made Average  per  hour Time  on  trial  balance hours. 


NOTES 


Bills  Receivable,  Ledger  Balance 

Total  uncollected  in  bill  book , 

Total  value  of  notes  in  the  safe . 

Bills  Payable,  Ledger  Balance 

Total  unpaid  in  bill  book 


CASH 


Ledger  Balance 

In  bank,  Stb.  No.. 
In  safe,  Currency , 
In  safe,  Checks,  _ 


Total  Cash  on  hand. 


TEACHER'S 


Respectfully  submitted. 


,191. 


STAMP 


III.  I.  Observing  from  your  ledger  account  with  Consignment  No.  i,  H.  S.  Tuttle  & 
Co.  (which  should  appear  like  Consignment  No.  i,  F.  H.  Burns,  106,  25),  that  the  goods  of  the 
Tuttle  consignment  received  in  92,  5,  and  sold  with  your  sales  in  93  (see  instructions  in  109,  13) 
have  all  been  disposed  of,  proceed  to  render  an  account  sales  to  Messrs.  Tuttle  &  Co.,  following 
the  instructions  given  in  106,  26,  in  regard  to  Consignment  No.  i,  F.  H.  Burns.  Deliver  this 
account  sales  to  your  teacher  or  the  Townsite  and  Trading  Co.,  handing  them  therewith, 
a  New  York  draft  for  the  amount,  which  you  will  purchase  at  your  bank.  Observe  that  the 
purchasing  of  this  draft  will  make  you  an  additional  item  of  expense  (exchange)  in  the  charges 
column  of  the  account  sales,  and  do  not  overlook  it  when  making  your  final  entry  as  per  in- 
structions for  closing  a  consignment  in  106,  26. 

2.  Fill  orders  approved  by  your  teacher,  and  make  entry,  observing  that  the  orders  which 
include  consignment  goods  must  be  credited  to  the  consignment,  itemized  and  not  to  merchan- 


1.  The  object  of  this  special  form  of  ruling  is  partly  to  exercise  the  student  in  the  possibilities  of  this 
journal  and  partly  to  give  him  a  form  by  which  the  balance  of  cash  may  be  proved  and  recorded  although  It 
may  not  be  either  necessary  or  desired  that  the  footings  of  the  other  columns  should  be  carried  to  the  ledger. 
For  example:  a  cash  balance  is  desired  daily.  Total  merchandise  sales  aggregated  weekly  or  monthly  might 
furnish  the  facts  desired  by  the  firm  in  that  account;  or  the  columns  here  used  for  merchandise  might  be  used 
for  some  other  purpose  in  which  a  weekly  or  monthly  total  is  preferred  to  a  daily  total.  In  such  case  this 
form  of  ruling  would  be  continued  until  the  time  when  all  footings  are  required  to  be  posted. 


CAMPBELL'S  ACTUAL  ACCOUNTING 


145 


dise  (See  105,  e).  Send  out  with  one  of  these  orders  a  draft  to  be  accepted  and  with  another 
a  joint  note  to  be  signed  and  returned  in  payment,  in  each  case  deducting  the  i  per  cent,  allowed 
by  your  terms  of  sale. 

3.  Enter  all  invoices  received  since  last  closing,  making  a  combined  entry  if  convenient. 
(See  16,  Footnote  2.)     Then  pay  as  follows : 

(a)  For  one  bill  give  your  note  payable  on  demand.  Such  a  note  should  read,  On  demand, 
after  date  I  promise,  etc.  Remember  to  make  the  bill  book  record  of  these  notes  before  deliver- 
ing them. 

(b)  For  another  bill,  pay  cash  less  2  per  cent.,  by  a  sight  draft  on  some  student  who  is  in- 
debted to  you  on  account.     Credit  the  drawee. 

(c)  For  another  bill  give  in  part  payment  a  note  not  yet  matured,  which  you  hold  against 
some  other  student.  Endorse  and  transfer  this  note  as  illustrated  in  61.  In  case  you  hold  no  note 
small  enough  to  be  a  part  payment  on  one  of  your  bills,  ask  the  student  who  has  sold  you  the 
largest  bill  to  take  the  note  as  payment  for  the  bill  and  pay  you  the  difference  in  cash.  Be 
sure  to  compute  the  accrued  interest  on  the  note  before  making  entry  for  this  transaction,  as 
that  will  be  in  your  favor  and  would  be  taken  note  of  in  business.  The  bill,  for  the  payment  of 
which  you  transfer  this  note,  should  be  discounted  at  i  per  cent,  exactly  as  if  you  had  given 
your  note  in  payment,  unless  the  time  for  discount  has  expired.  The  entry  will  involve  many  of 
the  principles  discussed  in  61    (c). 

(d)  Let  any  other  bills  received  remain  on  account. 

4.  If  any  merchandise  of  the  Consignment  received  as  instructed  in  110,  5,  remains  on  your 
hands,  make  a  special  sale  of  it  now  to  some  one  of  your  customers  on  the  usual  terms,  and 
enter  to  credit  of  Consignment  No.  2. 

5.  Remit  to  each  of  your  wholesale  houses  in  full  for  invoices  received  to  date  claiming 
the  discount  to  which  you  are  entitled  and  enclosing  with  your  orders  to  two  of  these  com- 
panies additional  orders  for  merchandise.  Make  these  orders  as  large  as  the  state  of  your  bank 
account  will  permit  within  the  limit  fixed  in  your  price  list.  Submit  letters  for  teacher's  ap- 
proval.    Pay  Freight  Bills. 

6.  Make  daily  closing,  91,  11,  c,  d,  e,  f,  g,  h. 

(a)  Add  your  journal  columns  in  pencil  and  prove  them,  observing  that  the  footings  at 
this  time  include  the  pencil  footings  of  the  merchandise  and  sundries  columns  of  the  journal  at 
the  previous  closing  and  the  cash  balance  which  was  brought  down,  but  no  figures  from  the 
cash  columns  above  the  closing  lines. 

(b)  Prove  cash  (in  pencil). 

(c)  Rule  your  journal  as  in  the  form  presented  beneath. 

(d)  Post  all  items  in  the  sundries  column  except  the  cash  footings  but  including  the  mer- 
chandise footings.    Check  (  /)  items  not  to  be  posted  as  shown  in  the  form  below. 

(e)  Prove  Bills  Receivable  and  Payable. 

(f)  Take  a  trial  balance,  taking  Cash  from  your  journal  where  it  is  brought  down  below 
the  closing  lines,  as  in  the  form  following: 


<^J/'/«(3 


4^.lX/fil 


Cpfjn  !<j 


/^^ 


^J^^J 


/a/6 

3oo 


!^IS 


c^<:f5r^ 


/^/£- 


3aa- 


Sf^^  «r 


40/S^<y 


♦Offset.  After  a  complete  closing  and  the  ruling  of  all  the  columns,  the  amount  of  the  cash  balance  brought 
down  below  the  closing  lines  is  entered  in  the  credit  sudries  column  to  preserve  the  balance  of  the  journal  and 
make  future  proof  of  the  footings  possible  without  turning  back  to  find  out  the  amount  of  the  balance  and  then 
deduct  it.    This  item  is  checked  (  V )  and  not  posted. 


146 


CAMPBELL'S  ACTUAL  ACCOUNTING 


7.  Secure  your  orders  for  next  day's  trading  and  submit  to  teacher  for  approval  together 
with  your  books  arranged  in  usual  order  for  inspection  with  teacher's  filing  copy  of  the  daily 
report  copied  neatly  in  the  form  below. 

REPORT 

Report  of  School  Duties:    I  take  bookkeeping Hours  a  day. 

Hours  worked  since  last  report ,  Absent Total No.  of  Letters  written 

No.  of  Invoices  bo't  of  wholesale  houses Of  students ,   Total 

No.  of  Payments  made  in  cash ;   in  notes ;    in    acceptances ;     Total 

No.  of  Payments  rec'd  in  cash ;   in  notes ;    in    acceptances ;     Total 

No.  of  Sales  made:     To  T.   &  T.  Co ;    to  students ;  Total  No ,  $ 

No.  of  Entries   made Average  per  hour Time  on  trial  balance hours. 


NOTES 


Bills  Receivable,  Ledger  Balance 

Total  uncollected  in  bill  book , 

Total  value  of  notes  in  the  safe 

Bills  Payable,  Ledger  Balance 

Total  unpaid  in  bill  book , 


CASH 


Ledger  Balance . . . , 
In  bank,  Stb.  No.. 
In  safe,  Currency  , 
In  safe,  Checks,  _ 


Total  Cash  on  hand. 


TEACHER'S 


Respectfully  submitted. 


112. 


191 ... .  STAMP 

I.     Render  an  account  sales  of  the  consignment  solicited  in    no,  5,    and    sold    as    in- 


structed in  III,  2.   See  106,  25  and  26  for  instructions  in  regard  to  consignments,  and  be  sure  that 
you  get  your  work  right  on  this  point.     Consult  teacher  if  necessary. 

2.  Fill  orders  approved  by  your  teacher  at  last  closing.  Accompany  one  bill  with  a  draft 
in  your  own  favor  for  acceptance  less  i  per  cent. ;  with  another  send  out  a  joint  and  several  note 
at  60  days  bearing  interest  after  maturity  at  8  per  cent,  for  the  amount  of  the  bill  less  i  per  cent. 
Leave  the  other  sales  to  the  buyer's  option  in  matter  of  payment ;  but  from  one  of  the  bills  retain 
a  single  card  of  goods,  placing  it  in  an  envelope  so  that  it  may  not  be  mislaid  and  holding  it 
until  the  purchaser  discovers  the  error  and  reports  it  to  you.  When  the  error  is  reported,  do  not 
hand  him  the  missing  card  but  put  it  back  into  your  wholesale  stock  and  give  him  a  memo- 
randum of  credit  for  the  value  of  the  missing  merchandise.  Your  memorandum  of  credit  should 
be  in  form  similar  to  the  memorandum  on  the  page  opposite.  Make  entry  charging  Merchan- 
dise and  crediting  the  purchaser.  Enter  this  merchandise  debit  in  the  sundries  column  so  that  it 
will  post  separately  to  the  ledger,  and  when  so  posted,  explain  it  in  your  ledger  as.  Merchandise 
returned. 

3.  Enter  all  invoices  received  since  last  closing,  and  make  payment  as  follows: 

(a)  For  one,  pay  cash  less  2  per  cent,  for  half  of  the  bill  and  give  your  note  less  i  per  cent, 
for  the  balance.     Entry  will  combine  20  (a)  and  20  (b) 

(b)  For  another,  pay  by  a  draft  on  some  customer  who  owes  you.  See  instructions  in  92, 
2  (b).  For  the  remaining  bills  use  your  own  option  as  to  payment  or  permit  them  to  stand  on 
account. 

4.  Place  orders  for  merchandise;  one  with  the  Quaker  Oats  Co.;  one  with  the  American 
Biscuit  Co. ;  and  one  with  the  Harmer  Produce  Co.,  and  remit  in  full  to  the  River  Dale  Fruit 
Company  and  the  Harmer  Produce  Company  for  former  purchases  less  discounts.  For  form  of 
these  letters  use  your  own  best  judgment,  but  submit  them  to  your  teacher  for  vising  before 
delivering. 


CAMPBELL'S  ACTUAL  ACCOUNTING 


147 


MemorBndutn  of  Or  edit 


Chester  W.  iSurbe 

JOBBER  IN  GROCERIES  AND  GROCER  S  SUNDRIES 
COLLEGE  CITY.  Y.  S. 


No  J2-^ 


Salesman    L',    7:     xf 


CREDIT 


^^^^^C^Tf^;^^-^^^ 


'^p^l^^^^.jf^A^^^A^^^rr   iftt 


's:=^:^^^*^^g!^«^'-g-a»-^^^^^ 


y   ;g^^^^^    •^^^Cs^-^.^^^i^J  -^  ^7>^^ 


-^-^^ 


dU^^z^^^L^  ;j^^  ^  ^ 


<^^J=Z. 


^^-^^^     ^^r^ 


-v^ 


^ 


jO 


^^^ 


5.  Pay  freight  bills  and  make  entry;  then  open  private  accounts  with  each  partner  and 
make  entry  charging  Salaries  and  crediting  each  partner's  private  account  for  the  amount  of 
his  salary  for  the  month.     Open  private  accounts  on  page  3  giving  each  partner  a  half  page. 

6.  Sell  all  goods  on  hand  in  Department  E  to  the  Townsite  and  Trading  Co.,  for  cash 
less  2i/^%,  adding  cartage  and  entering  as  in  105  (c). 

7.  Make  Daily  Closing. 

(a)  Prove  cash  in  pencil.    Then  foot  and  rule  the  six-column  journal  as  in  89  (q). 

(b)  Post  all  items  found  in  the  Sundries  column  (including  the  footings  of  Cash  and  Mer- 
chandise) to  the  ledger  as  in  former  postings. 

(c)  Rule  cash  account  in  the  ledger  and  make  your  bank  deposit. 

(d)  Prove  Bills  Receivable  and  Payable.    (69,  a  and  b.) 

(e)  Make  out  your  Expert  Report,^  first  consulting  106,  30,  and  if  it  shows  errors,  proceed  to 
find  and  correct  them.  Observe  that  this  involves  taking  an  inventory  of  Merchandise.  See 
93»  94»  95»  96  and  106,  30. 

(f)  Take  a  trial  balance  of  the  face  of  your  ledger  (pencil  footings)  after  making  and  post- 
ing the  correction  entries  for  errors  discovered  in  your  Merchandise  transactions  and  record  in 
trial  balance  book.  Be  careful  to  enter  the  page  of  each  ledger  account  in  the  "L.  F."  column  of 
your  trial  balance.  If  your  ledger  does  not  balance  consult  71,  72,  and  92  unless  you  have  al- 
ready learned  to  find  a  trial  balance  without  need  of  the  references. 

(g)  Secure  orders  for  your  next  day's  trading  and  submit  them  for  teacher's  approval,  sub- 
mitting your  books  for  inspection  in  usual  form  (see  98)  with  a  carefully  filled  out  full  proof, 
report  blank,  also  neatly  copied  in  the  form  below.  TEACHER'S 

113.  When  your  teacher  has  approved  your  work  to  this  point  and 
placed  his  stamp  in  the  form  to  the  right,  you  will 

(a)  Proceed  to  reduce  your  trial  balance  to  a  balance  of  differences 
in  all  accounts  except  Merchandise,  where  you  will  use  the  two  footings, — 
the  debit  to  show  the  cost  of  merchandise  and  the  credit  to  show  the 
amount  of  the  sales, — see  Footnote  2  under  78.  STAMP 

(b)  The  inventory  of  merchandise  taken  in  connection  with  your  proof  in  7,  (e),  with  such 
corrections  as  your  proof  has  required  is  the  inventory  of  merchandise  for  the  present  closing. 
Why  are  there  no  inventories  of  Expense  or  Salaries?    See  5  above. 

1.  If  correction  entries  have  been  made  during  the  work,  they  must  not  be  permitted  to  increase  the 
amount  of  real  purchases  or  sales  in  any  department,  when  making  out  the  expert  report.  If  the  Mdse.  debit 
or  credit  fell  on  the  same  side  as  that  of  the  entry  to  be  corrected,  it  is  evident  that  it  merely  made  the  origi- 
nal purchase  or  sales  entry  what  it  should  be  and  that  it  will  require  no  further  attention;  but  if  the  correction 
was  a  contra  entry,  it  increased  unnaturally  the  opposite  side  of  the  account,  and  must  either  be  subtracted 
from  both  footings  or  treated  as  returned  merchandise  or  sales  at  cost  for  which  see  106,  30. 


148 


CAMPBELL'S  ACTUAL  ACCOUNTING 


(c)  Make  out  a  balance  sheet  and  close  books  following  closely  the  instructions  in  107  (d). 
If  either  partner  have  a  private  account,  bring  down  separately  each  partner's  net  private  debit 
or  credit  and  adjust  thereon  his  share  of  the  gain,  carrying  the  result  to  his  stock  account  as  in 
the  form  following: 

114.  Form  For  Closing  Balance  Sheet  in  a  Partnership  When  the  Partners  Have  Private 
Accounts  (compare  this  with  the  closing  of  the  balance  sheet  in  107.) 


y^£^..'^!Z-^^^7^ 


?£2_^ 


^ 


'>^y>2 


M 


^^^^ 


J2J-\1'. 


^.Siya 


JafC^' 


7'7 


Js-g-Ut 


Z^L 


g 


/<f:r^i^. 


^ 


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/^J^^x/'e/'j. 


J-//S 


■^f'// 


J-fag^-^/T 


/^raA'Jii'J. 


zr 


115.  Make  out  another  balance  sheet  in  the  analytical  form  of  statement  shown  in  86,  and 
hand  it  to  your  teacher  for  approval  together  with  a  check  in  favor  of  your  partner  for  the  balance 
of  his  stock  account.  A  good  form  for  the  trial  balance,  making  possible  a  briefer  statement 
of  resources  and  liabilities,  is  shown  on  the  opposite  page.  The  Losses  &  Gains  will  be  much  as 
shown  in  86  and  the  Distribution  of  Gain  as  shown  above.    See  106,  31  (h). 

(a)  Make  entry  for  this  check  in  your  journal,,  placing  both  items  in  the  Sundries  column 
and  posting  both  debit  and  credit  directly  to  the  ledger.  Rule  the  double  closing  lines  across 
the  money  columns  of  the  journal ;  balance  and  rule  the  Cash  account  again,  and  rule  your  part- 
ner's stock  account.    This  dissolves  your  partnership. 

(b)  Write  out  a  Notice  of  Dissolution  in  the  following  form,  sign  it  and  have  it  signed  by 
your  partner,  then  hand  it  to  your  teacher  when  you  submit  your  books  for  marking.  Any  two 
students  may  sign  as  witnesses.    Write  neatly  or  on  typewriter. 


NOTICE   OF  DISSOLUTION. 

The   partnership   heretofore  existing  between (your  own  name  here) 

(your  partner's  name  here) 


and 


(your  partner's  name  here) 


firm  of 


(your  firm's  name  here) 


Tias  this  day  been  dissolved  by  mutual  consent 
retiring  from  the  business.    All  debts  owed  by 
will  be  paid  by      (your  name  here)        who 


is  hereby  authorized  to  collect  all  liabilities. 

Dated        19    

Signed, 


(you  will   sign  here) 


witnesses 


(your  partner  will  sign  here) 


(c)  Take  all  of  the  books  used  while  working  this  outline  to  your  teacher's  desk  for  grad- 
ing, carefully  examining  them  as  instructed  in  98  (c),  and  while  they  are  being  graded,  study 
the  Evolution  of  the  Cash  Book  on  the  pages  following.  When  your  teacher"  has  approved  your 
work  he  will  enter  his  markings  in  the  form  following: 


CAMPBELL'S  ACTUAL  ACCOUNTING 


149 


REPORT 

Report  of  School  Duties:    I  take  bookkeeping Hours  a  day. 

Hours  worked  since  last  report ,  Absent Total No.  of  Letters  written 

No.  of  Invoices  bo't  of  wholesale  houses Of  students ,  Total 

No.  of  Payments  made  in  cash ;  in  notes ;    in    acceptances ;    Total 

No.  of  Payments  rec'd  in  cash ;   in  notes ;    in    acceptances ;    Total 

No.  of  Sales  made:     To  T.   &   T.  Co ;   to  students ;  Total  No ,  $ 

No.  of  Entries  made Average   per  hour Time  on  trial  balance hours. 


NOTES 


Bills  Receivable,  Ledger  Balance  . 

Total  uncollected  in  bill  book 

Total  value  of  notes  in  the  safe 

Bills  Payable.,  Ledger  Balance  . . . , 
Total  unpaid  in  bill  book 


CASH 


Ledger  Balance 

In  bank,  Stb.  No.. 
In  safe,  Currency 
In  safe,  Checks,  _ 


Total  Cash  on  hand. 


MERCHANDISE 


Cost  of  Mdse.  bought 

Present  inventory 

Cost  of  goods  sold  

Sales  of  merchandise 

Gain,  red  ink;  Loss,  black. . . . 
Errors:  Ourfvr.red;  cont. black 


Department  A 
Goods 


Department  E 
Goods 


TEACHER'S  MARKING 


Accuracy . . . 
Neatness , . . 
Orderliness . 

Records  

Progress. . . . 
Average .  . . . 


Respectfully  submitted, 


TEACHER'S 


.191. 


STAMP 


STATEMEITT  OF  THE  OOHDITIOB  OP  C«  W.  BURKE'S  BnaHBaS^  FBBHUAHJf  £1,  19 


11 

10 

10 

9 

8 
8 
6 
5 
4 
4 
3 
3 
S 
1 

Xrlsl  Bolanoe  

The  Keystoce  Conpaay 

P.  H.  Bums 

Anderson  &  Anderson 

HoConr.ell  &  Company 

Personal  Acoounts  Beoeivabla,  (Dae  ua) 

"      "    Payable,  (We  owe) 
Bills  Payable 
BlllB  Reoelvable 
Interest  &  Disoount 

Salaries,  (liabllltlee  InTentory,  $37.60) 
Prelght 

Expense,  (Inventory,  $36.00) 
Herohaiidlse  Clsooant 
Uercbandlse  (Inventory  $3936.01) 
Cash 
C.  W.  Burke,  Proprietor 

_ Resoureea  &  liabilities  

Resouroes  

lis 

862 
717 

78 
67 
SO 

646 

18 

1693 

648 

60 

42 

SOS 

11464 
924 

96 

47 

00 
00 
00 

34 
39 

646 
1293 

7 

31 

8147 

18 
IS 

74 

67 
64 

00 

*— 

16126 

Ji> 

16125 

lb 

Cash 

Merchandise,  per  Inventory, 
Bills  Receivable 
Personal  Accounts  due  us 
Expense,  per  inventory. 

Total  Assets 

liabilities  

Salaries,  due  and  trnpaia. 

Bills  Payable 

Personal  Accounts  that  we  owe 

Total  Liabilities 
C.  W.  Burlce's  Present  Worth 

924 
3936 

648 

1693 

36 

39 
01 

47 
95 
00 

7238 
1975 

37 

1293 
646 

60 

12 

82 

—J 

^ 

5227 

02 

1 

150 


ii6 


CAMPBELL'S  ACTUAL  ACCOUNTING 
THE  EVOLUTION  OF 


^r^r 


(n) 

(o) 
(P) 


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S£>oa 

- 

^<p£>a 

/  ^Ja 

- 

/^ra 

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ar 

/  JfJ 

at^ 


(a)  Observe,  first,  that  on  this  page  above  are  copied  all  the  entries  in  which  Cash  was 
debited  in  your  practice  entries  in  the  business  of  C.  W.  Burke  as  far  as  section  26  of  the  text 
book ;  and  on  the  opposite  page  above,  all  the  entries  in  which  Cash  was  credited  in  that  business 
during  the  same  time.  Observe,  second,  that  this  makes  the  left  hand  column  of  this  page  and 
the  right  hand  column  of  the  opposite  page  exclusively  cash,  and  that  the  totals  of  these 
columns  are  the  totals  respectively  of  the  debit  and  credit  of  Cash  in  Model  Journal  No.  i.  Now 
take  up  (b)  on  the  opposite  page  and 

117 


z^/- 


(n)      Q^t<ny. 
(o)   ^ 

(P) 


fe^ 


yryj 


ar 


ar 


(a)  Next  observe  that  with  the  exception  of  the  items  of  cash  on  each  side,  all  items  on  this 
(or  the  left  hand  page)  post  to  the  credit  of  the  accounts  named ;  and  that 

(b)  All  items  on  the  right  hand  page  post  to  the  debit  of  the  accounts  named;  and  that  if  we 
arbitrarily  use  the  left  hand  column  of  each  page  for  items  we  have  the  two  pages  uniform  in 

118 


y^/' 


(o) 
(P) 


/" 


7 


^.9 


U 


-4- 

^2.  '■/^t^*^tJ^-^':^ez-^  -2- 


yo'g'a 


^z- 


yrys 


at 


7/>J» 


/^^S  — 


ar 


(a)  When  a  cash  book  is  used  it  takes  the  place  of  the  journal  as  a  book  of  original 
entry  for  all  entries  that  are  entirely  cash  as  in  the  ist,  2d,  3d,  6th,  and  7th  entries  of  the  Model 
Journal  (see  25,  pages  22  and  23)  ;  while  in  the  case  of  entries  that  are  only  partly  cash,  as  in  the 
9th,  loth  and  14th  entries  in  the  Model  Journal,  the  first  or  original  entry  is  to  be  made  in  the 
journal  and  the  cash  posted  to  the  cash  book  just  as  if  it  were  the  Cash  account  in  the  ledger 
as  is  indicated  by  the  references  marked  "J"  in  the  preceding  cash  book. 

(b)  For  Practice  in  the  use  of  the  cash  book  along  with  the  journal  as  you  will  use  it  in 
Outline  III,  take  up  your  practice  journal  (the  book  used  in  C.  W.  Burke's  business)  and  re-enter, 
in    cash   book    form,    explaining   carefully,    every   entry    that   you    have    previously   journalized 


CAMPBELL'S  ACTUAL  ACCOUNTING 


151 


116 


THE  CASH  BOOK. 


(q) 

(r) 

(s) 
(t) 

(u) 


/o 


/a 


/a 


(^^<2>^^-^'>i^c^^ 


^^' 


/^a 

- 

/j-a 

/SOO 

/^^^ 

//2ji 

-" 

//2i 

^-^ 

^/ 

'^^a 

2^sa 

2-^J-a 

ar 


(b)     Observe  that  on  this  page  below  are  arranged  all  the  debit  items  of  the  cash  credits 
above,  and  that  the  total  is  carried  into  the  right  hand  column  as  a  credit  to  Cash,  w^hile  on  the 
opposite  page,  the   credit  items  above  are  similarly  arranged,  presenting  three  credit  items  with 
the  total  as  a  Cash  debit. 
117 


^9/ 
(q)  J^-^i^ 

(r) 
(s) 
(t) 


.^^^^s^^  -^^^17^  ^^  yii;^^  ^-^i-^^^r^^ 

^^^ti^^-tiCs^^^^  ?i^>-t.^-^iy>  yy^^.^/,.^^  "^»r'^^  ^<paf=^..-^e.d^  j.  y^ 


//2:S 


or 


^/^i  af 


style,  making  a  book  that  shows  in  its  respective  footings  the  debit  and  credit  of  Cash  and  from 
which  only  that  part  of  the  entry  that  is  not  cash  is  posted  as  shown  in  forms  below. 
118 


'^y- 


(r.) 


(s) 
(t) 
(u) 
(V) 


/a 


2^- 


ar 


^/i^a  a  S 


yryjat. 


TEACHER'S 


in  your  practice  work   as   far  as   Section   65,  placing    in    th^"    cash    book    all     those     journal 

entries  that  are  strictly  cash  (see  those  not  post-checked  in  the  preceding  cash  book) 

and  entering  all  other  entries  in  the  journal,  posting  all  cash  found  in  these  entries 

to  the  cash  book  as  instructed  in  118  (a).     When  you  have  re-entered  Mr.  Burke's 

entire  business  up  to  February  21,  191..,  as  instructed,  submit  your  work  to  your 

teacher  and  when  approved  he  will  hand  you  your    regular   books    for    the    work    of 

Outline  HI  and  will  place  his  stamp  in  the  following   form.     Do   not   Proceed   Until        stamp 

Your  Book  is  Stamped. 

1.  Instead  of  the  one  check  of  J.  C.  D.  &  Co.  for  $1,293.08  that  was  actually  in  the  cash  drawer  at  this 
time,  that  amount  is  here  supposed  to  represent  one  check  and  a  balance  in  currency  that  the  student  may  ob- 
serve the  method  of  itemizing  money  in  safe  when  entering  the  red  ink  cash  balance.  Were  there  more  than 
one  check,  they  should  be  shown  separately  in  small  figures  between  the  word,  checks  and  the  figures,  1187.08. 


152 


CAMPBELL'S  ACTUAL  ACCOUNTING 


OUTLINE  III. 

119.  I.  As  previously  intimated,  the  books  you  will  use  for  the  work  of  this  outline  at  the 
beginning  are  Journal,  Cash  Book  and  Ledger.  The  Journal  will  be  the  same  form  that  you 
used  in  Outline  L  Begin  at  the  top  of  the  first  blank  page  and  using  your  own  resources  and 
liabilities  as  shown  by  your  balance  sheet  at  the  close  of  Outline  II,  make  an  opening  entry  in 
the  same  form  as  the  following,  made  with  the  resources  and  liabilities  of  C.  W.  Burke  at  the 
closing  of  his  business  February  21,  191.  .^ 


<.^^<^t^■ 


7 


2.  Pay  for  the  goods'  that  you  ordered  from  your  wholesale  houses  at  the  close  of  your  last 
business,  remitting  the  full  amount  of  each  bill  without  discount,  as  these  bills  have  matured 
while  you  were  closing  your  books.  If,  however,  any  have  not  matured,  make  entry  for  the 
payment  of  these  in  the  journal  taking  account  of  the  discount  as  in  former  payments  and  posting 
the  cash  at  once  to  the  cash  book  and  checking  it  as  in  the  items  (t)  and  (u)  in  Sec.  118. 
Enter  all  net  cash  payments  as  in  the  items  (q),  (r),  (s),  Sec.  118. 

3.  (a)  Spot  Cash  Sales.  Before  proceeding  to  fill  your  orders,  learn  from  your  purchasing 
agent,  or  by  personal  inquiry,  who,  if  any,  of  your  customers  are  willing  to  pay  cash  on  delivery 
of  the  goods.  Give  them  the  preference  in  filling  your  sales  orders  so  that  you  may  have  at 
least  four  or  five  cash  sales  in  today's  business.  In  discounting  these  cash  sales,  take  off,  first,  the 
usual  3  per  cent,  trade  discount,  then  an  additional  2  per  cent,  for  cash,  and  make  the  terms  of 
your  bill  Net"^  Cash.     You  should  collect  for  these   when   the   goods   are  delivered   and   if  you 

1.  This  is  not  a  part  of  the  practice  work  known  as  C.  W.  Burke's  business,  but  is  the  form  that  would  be 
used  if  C.  W.  Burke  were  to  open  a  new  set  of  books  of  this  kind,  with  his  resources  and  liabilities  as  they 
stood  on  Feb.  21.    See  his  balance  sheet. 

2.  Net  without  discount. 


CAMPBELL'S  ACTUAL  ACCOUNTING 


153 


succeed  in  doing  this  you  may  enter  them  as  in  the  item  (o)  in  118  with  the  explanation  Cash 
sales  to  which  you  may  add  the  initials  of  the  purchaser  as  a  schoolroom  reference.  Such  an 
entry  in  business  would  make  no  reference  to  the  purchaser. 

(b)  Make  other  sales  following  your  usual  instructions  until  you  have  filled  all  your 
orders.  Quote  the  usual  terms.  Enter  all  bills  that  are  not  "Spot  Cash,"  in  your  journal,  charg- 
ing the  purchaser  as  in  previous  sales. 

(c)  If  any  of  those  to  whom  you  have  made  the  special  cash  price  as  per  previous  instruc- 
tions cannot  pay  when  you  are  ready  to  present  the  bills,   enter  the   bills  in   the   journal,   charg- 
ing them  on  account  less  the  trade  discount  only,  and  deliver  the  invoices  with  the  goods.    When " , 
payment  is  made,  make  entry  as  in  any  other  receipt  of  cash  on  account.    See  6  below. 

4.  Check  carefully  as  in  91,  5,  and  enter  all  invoices  received  since  your  last  closing,  mak- 
ing a  combined  entry  in  your  journal  as  per  the  form  presented  in  Section  16,  Footnote  i. 

5.  Make  payment  for  bills  received,  as  per  terms  of  the  bills,  accepting  drafts  or  notes 
where  these  accompany  the  bills  and  in  the  case  of  bills  in  which  you  have  the  option  of  pay- 
ment, make  payment  in  cash  for  all  that  have  matured,^  giving  notes  less  the  allowed  discount  for 
others.  For  those  that  you  pay  in  cash,  make  entry  as  in  118  (s).  For  the  notes  that  you  give 
make  entry  in  the  journal  as  in  former  work  or  see  20  for  notes  and  57  (a)  for  the  acceptance  of 
drafts. 

6.  For  payment  received  in  cash  without  discount,  enter  as  in  118  (p),  but  without  the  jour- 
nal check,  J.-2,  explaining  Received  payment  sale  No.  — .  If  there  be  a  discount  in  the  case  of  a 
cash  payment,  or  if  payment  be  made  by  note  or  acceptance,  make  the  entry  in  your  journal  as 
in  former  work,  and  post  the  cash  to  the  cash  book  as  illustrated  in  your  practice  by  the  item 
118  (p)  checking  the  posted  item  with  your  journal  page  J.-i  or  J.-2. 

7.  Collect  all  bills  receivable  that  are  due  and  make  entry  on  the  left  side  of  your  cash  book 
using  two  lines,  one  for  the  face  of  the  note  collected  and  one  for  the  interest  as  follows  r^ 


^=^2^^\^ 


■c</ 


^<s»»-^-£S-  /-JLo 


/ 


7^ 


8.  Pay  all  bills  payable  that  have  matured  making  entry  on  the  credit  side  of  your  cash 
book,  using  two  lines,  one  line  for  the  face  of  the  note  and  one  for  the  interest  as  in  the  case  of 
Bills  Receivable,  charging  Bills  Payable  and  Interest  as  follows: 


9.  Place  orders  for  merchandise  with  three  of  the  wholesale  houses  with  which  you  have 
been  trading  and  when  the  goods  arrive  prepare  for  your  teacher's  acceptance  your  orders  from 
customers  for  another  day's  trading. 

10.  Pay  freight  bills. 

11.  Make  daily  closing,  that  is,  post,  prove  Cash,  prove  Bills  Receivable,  find  trial  balance, 
etc.,  as  per  91,  11,  (except  11,  b). 

12.  Arrange  your  books  for  teacher's  inspection  as  instructed  in  98,  and  submit  them  with 
your  customers'  orders,  having  filled  out  carefully  the  duplicate  copy  of  the  daily  report  and 
neatly  copied  it  in  the  form  following. 

1.  "Matured,"  as  applied  to  a  note  or  invoice,  means  due,  so  that  there  will  be  no  discount  when  paid. 

2.  Observe  that  the  Cash  Book  explanations  should  begin  at  the  same  point  on  each  line  of  the  page  forming 
a  straight  vertical  line,  as  in  the  forms  shown  above. 


154 


CAMPBELL'S  ACTUAL  ACCOUNTING 


REPORT 

Report  of  School  Duties:    I  take  bookkeeping Hours  a  day. 

Hours  worked  since  last  report ,  Absent Total No.  of  Letters  written 

No.  of  Invoices  bo't  of  wholesale  houses Of  students ,   Total 

No.  of  Payments  made  in  cash ;   in  notes ;    in    acceptances ;    Total 

No.  of  Payments  rec'd  in  cash ;   in  notes ;    in    acceptances ;     Total 

No.  of  Sales  made:     To  T.   &   T.  Co ;    to  students ;  Total  No ,  $ 

No.  of  Entries  made Average   per  hour Time  on  trial  balance hours. 


NOTES                                               j 

CASH 

Bills  Receivable,  Ledger  Balance 

Lodger  Balance 

Total  uncollected  in  bill  book 

In  bank,  Stb.  No.          ,  

In  safe,  Currency 

In  safe,  Checks, 

mils  Payable,  Ledger  Balance 

Total  unpaid  in  bill  book 

Total  Cash  on  hand 

Kespectfully  submitted. 


TEACHER'S 


191 ... .  STAMP 

120.  I.  Fill  your  approved  orders  seeking  spot  cash  buyers  as  instructed  in  your  preceding 
day's  work  and  enter  as  in  iig,  3,  sending  out  with  all  bills  that  are  not  spot  cash,  either  a  note 
to  be  signed  or  a  30-day  draft  to  be  accepted,  deducting  the  usual  i  per  cent,  from  the  face  of 
the  bill  in  computing  the  amount  of  the  draft  or  note.- 

2.  (a)  If  notes  or  drafts  accompany  any  of  the  invoices  you  receive,  enter  these  invoices  in 
your  journal  in  the  usual  form,  carefully  checking  all  items,  extensions,  and  other  computations 
to  insure  accuracy.  Then  accept  the  accompanying  drafts  or  sign  the  notes  and  make  the  entries 
for  payment,  delivering  the  notes  or  acceptances  to  the  creditor  after  you  have  completed  your 
entry  and  bill  book  record. 

(b)  For  all  bills  that  allow  you  option  of  payment,  deduct  the  special  2  per  cent,  discount 
from  the  net  amount  of  the  bill  and  pay  by  check  making  entry  in  the  cash  book  only,  as  in 
118  (r). 

3.  Collect  all  notes  or  acceptances  that  have  matured  and  pay  those  that  you  owe,  making 
entry  in  your  cash  book  and  observing  that  the  entry  for  the  payment  of  a  note  with  interest  will 
occupy  two  lines  on  the  credit  side  of  the  cash  book  as  in  119,  8,  and  that  in  collecting  notes  with 
interest  the  entry  will  be  very  similar  but  on  the  opposite  or  debit  side  of  the  cash  book  as  in 
119,  7.    Remember  to  make  the  proper  record  under  Collection  or  Payment  Data  in  the  bill  book. 

4.  E.  H.  Wemple,  a  wholesale  grocer,  who  has  recently  been  specializing  in  Tea,  Coffee 
and  Sugar  proposes  a  partnership  with  you  on  the  basis  of  equality  of  investment  adjusted  by  the 
payment  of  interest  to  each  partner  on  his  net  investment,  and  the  payment  of  interest  by  each 
partner  on  all  withdrawals,  with  salary  for  each  partner,  each  giving  full  time  to  the  business. 
Accepting  this  will  necessitate  a  closing  of  your  books  and  a  proof  of  the  results  of  your 
business. 

5.  Prove  Cash,  and  rule  your  cash  book  as  shown  in  118,  entering  the  balance  in  red  ink 
as  in  118  (v).  Post ;i  prove  Bills  Receivable  and  Payable;  and  either  take  a  trial  balance  now  or 
after  working  6  below.     See  76   (c). 

6.  Prove  the  accuracy  of  your  transactions.  Your  sales  of  merchandise  on  a  spot  cash 
basis,  entries  for  which  would  be  made  in  your  cash  book,  will  be  a  new  feature  to  be  taken 


1.  Observe  in  posting,  that  items  from  the  left  side  of  the  Cash  Book  are  to  be  posted  to  the  right  side  of 
the  accounts  named  and  that  entries  from  the  right  side  of  the  Cash  Book  are  to  be  posted  to  the  left  side  of 
the  accounts  named;  that  the  cash  when  proved  is  to  be  ruled  and  balanced  as  in  the  illustrative  form  in  118. 


CAMPBELL'S  ACTUAL  ACCOUNTING  155 

into  account  in  your  proof  of  merchandise  and  will  necessitate  special  instructions  which  you  will 
follow  closely. 

(a)  Turn  first  to  106,  30,  and  observe  carefully  the  method  to  be  pursued  regarding  re- 
turned merchandise,  goods  sent  out  on  commission,  etc.,  and  follow  it  if  any  such  transactions 
have  occurred.  Entries  made  for  the  correction  of  errors  (when  contra)  are  to  be  deducted  from 
both  sides  of  the  account  or  might  be  treated  like  returned  Mdse.  When  on  the  natural  side 
with  the  rest  of  the  entry  which  was  corrected  they  require  no  attention. 

(b)  Your  "spot  cash"  sales  will  cause  no  change  in  your  plan  of  proof  until  you  have 
worked  down  to  Line  7  and  are  ready  to  deduct  the  selling  discount.  Here  you  must  remember 
that  the  special  cash  discount  of  2%  was  taken  off  before  entry,  in  addition  to  the  regular  trade 
discount  and  you  must  compute  the  amount  of  this  discount  on  all  the  "spot  cash"  sales  made 
(see  cash  book),  and  increase  the  selling  discount  by  this  amount.  Be  careful  to  compute  this 
2%  discount  on  the  right  base.^ 

7.  When  your  merchandise  proves  and  your  errors  have  been  corrected  by  entry  as  your 
teacher  may  direct,  take  a  trial  balance,  if  you  have  not  already  done  so,  or  if  you  have  made  any 
corrections,  as  these  will  change  the  figures  of  the  balance  already  taken.  Reduce  this  trial 
balance  to  a  balance  of  differences  in  all  accounts  except  merchandise  which  account  should 
show  both  debit  and  credit,  the  debit  representing  the  cost  of  goods  and  the  credit  being  the 
total  amount  of  sales.  Follow  this  form  hereafter  in  all  balance  sheets,  so  far  as  Merchandise  is 
concerned. 

8.  Take  a  careful  inventory  of  merchandise,  recording  it  in  your  journal  at  the  close  of 
your  last  work  and  proceed  to  make  out  a  balance  sheet  as  instructed  in  78  to  81,  except  in 
the  matter  of  merchandise.  See  78,  Footnote  2.  Your  business  at  this  time  being  that  of  a  single 
proprietor,  the  closing  of  your  balance  sheet  and  ledger  will  follow  closely  the  forms  and  in- 
structions given  in  80  to  84  and  when  your  books  are  entirely  closed  make  out  the  analytical 
form  of  balance  sheet  or  statement,  presented  in  86,  which  is  to  be  shown  to  your  teacher,  as 
representing  E.  li.  Wemple,  who,  before  entering  into  partnership  with  you,  desires  to  know 
the  exact  condition  of  your  business. 

9.  Your  books  being  now  closed,  you  receive  from  E.  H.  Wemple  as  represented  by  Forms 
75,  76,  'j'j,  78  and  79,  which  you  will  detach  in  order, — • 

(a)  A  copy  of  the  contract  of  partnership  already  filled  out  on  the  part  of  Mr.  Wemple,  and 
ready  to  be  completed  by  the  attaching  of  the  two  balance  sheets  and  by  the  signatures  of  the 
parties  which  you  will  have  two  students  witness.    Your  teacher  will  sign  for  Mr.  Wemple ; 

(b)  A  statement  of  the  condition  of  E.  H.  Wemple's  business  on  this  date  in  the  same  form 
as  the  one  you  have  prepared  of  your  business ; 

(c)  An  inventory  of  all  his  merchandise  in  stock,  attached  to  which  are  the  tickets  repre- 
senting the  goods ; 

(d)  An  inventory  of  unused  fuel — see  Expense  in  statement.  As  this  is  to  be  used  up  in  the 
continuing  of  your  business  no  tickets  will  be  furnished ; 

(e)  The  note  of  W.  H.  Moore,  being  the  balance  of  the  Bills  Receivable  account.  Observe 
that  Mr.  Wemple  has  endorsed  this  note  to  the  firm,  in  blank  and  to  prevent  its  being  collected 
without  the  firm's  endorsement  you  will  now  write  on  the  back  of  the  check  across  the  left  end 
just  above  Mr.  Wemple's  endorsement  the  words  Pay  to  the  order  of  followed  by  your  firm  name. 

(f)  A  check  on  his  bank  for  the  balance  of  his  cash  account. 

Observe  that  the  lists  of  personal  accounts  receivable  and  payable  are  furnished  in  the  bal- 
ance sheet  and  statement.  Observe  further  that  the  date  of  both  check  and  note  are  to  be  sup- 
plied.   Make  the  check  the  present  date  but  antedate  the  note  ten  days.     Mr.  Wemple  has  made 

1.  Compute  this  2%  discount  on  the  total  of  the  spot  cash  sales  either  by  dividing  the  amount  of  sales  by 
98  to  find  the  base  or  (preferably)  by  the  short  method  of  computation  presented  in  21;  the  sum  of  the  several 
discount  computations  being  the  total  amount  of  the  2%  discount. 


156 


CAMPBELL'S  ACTUAL  ACCOUNTING 


the  check  payable  to  himself  and  endorsed  it  in  blank.  You  can  place  on  it  the  same  endorsement 
as  on  the  note  or  you  can  hold  it  as  it  is  until  deposited.  If  left  as  it  is,  however,  a  finder  might 
cash  it.    Why?    Consult  teacher. 

10.     Proceed  to  enter  detached  forms  in  your  books  as  follows : 

(a)  Make  an  entry  very  similar  to  your  own  opening  entry  when  you  began  this  business 
(except  that  the  entry  may  precede  the  explanation)  in  which  you  will  debit  the  resources  shown 
in  E.  H.  Wemple's  statement  and  credit  the  liabilities,  crediting  E.  H.  Wemple  for  the  net 
investment  and  explaining,  E.  H.  Wemple  becomes  a  full  partner  in  the  iirm  of  {your  name)  & 
Wemple,  the  losses  and  gains  to  be  shared  equally  and  the  investments  adjusted  by  interest  as 
per  articles  of  co-partnership  this  day  signed,  and  witnessed  in  duplicate  and  a  copy  given  to  each 
partner. 

(b)  Number  the  inventory  of  merchandise  turned  over  to  you  by  Mr.  Wemple  as  you  would 
an  invoice  received,  and  file  it  with  your  wholesale  invoices,  placing  the  tickets  which  represent 
the  goods  in  the  wholesale  envelope,  Department  A. 

(c)  Make  a  record  in  your  bill  book  of  the  Bills  Receivable  and  Payable  that  come  into 
your  business  and  place  the  notes  receivable  endorsed  to  you  by  Mr.  Wemple  in  your  note  file. 

(d)  Take  the  contract  as  prepared  by  Mr.  Wemple  and  complete  it  by  filling  in  your  own 
name  wherever  it  should  appear  and  attaching  your  statement  of  Resources  and  Liabilities  to- 
gether with  the  statement  of  Mr.  Wemple.  Then  copy  this  contract  and  sign  both  the  original 
and  the  copy  and  have  your  signatures  witnessed  by  two  students.  Your  teacher  will  sign  for  Mr. 
Wemple  and  will  take  the  copy  you  made  of  the  contract,  as  Mr.  Wemple's  copy.  File  your  copy 
in  the  Receipts  compartment  of  your  filing  case. 

(e)  When  all  this  work  is  completed  as  instructed,  secure  orders  for  your  next  day's  trad- 
ing, and  make  your  usual  remittances  to  the  wholesale  houses,  placing  new  orders  with  the 
Harmer  Produce  Co.,  the  River  Dale  Fruit  Co.,  and  the  Van  Camp  Packing  Co. ;  then  place 
your  books  in  usual  order  for  teacher's  inspection;  accompany  them  with  a  report  of  your 
business  as  it  stood  when  you  took  your  trial  balance ;  and  submit  your  books  for  inspection 
with  your  report  neatly  copied  in  the  form  below. 

REPORT 
Report  of  School  Duties:    I  take  bookkeeping Hours  a  day. 

Hours  worked  since  last  report ,  Absent Total No.  of  Letters  written 

No.  of  Invoices  bo't  of  wholesale  houses Of  students ,  Total 

No.  of  Payments  made  in  cash ;  in  notes ;    in    acceptances ;    Total 

No.  of  Payments  rec'd  in  cash ;   in  notes ;    in    acceptances ;     Total 

No.  of  Sales  made:     To  T.  &  T.  Co ;   to  students ;  Total  No ,  $ 

No.  of  Entries  made Average  per  hour Time  on  trial  balance hours. 


NOTES 


Bills  Receivable,  Ledger  Balance  . 

Total  uncollected  in  bill  book 

Total  value  of  notes  in  the  safe . 

Bills  Payable,  Ledger  Balance 

Total  unpaid  in  bill  book 


CASH 


Ledger  Balance. . . 
In  bank,  Stb.  No.. 
In  safe,  Currency 
In  safe,  Checks,  _ 


Total  Cash  on  hand. 


MERCHANDISE 

Department  A 
Goods 

Department  E 
Goods 

TEACHER'S  MARKING 

Cost  of  Mdse.  bought 

Accuracy 

3 

2 
2 
2 
1 

Present  inventory 

Neatness 

Orderliness 

Cost  of  goods  sold 

Sales  of  merchandise 

Records  

Gain,  red  ink ;  Loss,  black 

Progress 

Errors:  Ourfvr.red;  cont.  black 

Average 

CAMPBELL'S  ACTUAL  ACCOUNTING 


157 


TEACHER'S 


Respectfully  submitted, 


,191. 


STAMP 


121.  The  Sales  Book.  While  performing  the  remainder  of  the  work  of  this  outline  you  will' 
use  the  sales  book  for  entering  all  sales  that  are  not  entered  in  the  cash  book  (such  as  you  have 
been  entering  in  your  journal).  Study  the  form  of  this  book  as  presented  below.  Observe  that 
the  entry  is  more  in  the  form  of  a  bill  than  of  a  journal  entry  and  that,  in  posting,  each  customer 
is  debited  for  the  net  amount  extended  into  the  Mdse.  column  and  that  Mdse.  is  credited  for  the 
total  amount  as  shown  at  the  foot  of  the  page.  Note  also  that  this  total  amount  is  not  neces- 
sarily posted  at  the  foot  of  each  page  but  is  carried  forward  from  the  foot  of  one  page  to  the  top 
of  the  next  until  it  includes  the  entire  period  of  time  for  which  a  record  of  the  total  sales  is 
desired.  Thus,  the  footing  of  the  sales  book  when  posted  may  convey  to  the  ledger  in  a  single 
item  the  total  sales  for  the  day  or  for  a  week  or  possibly  for  a  month  as  may  be  desired  by  the 
proprietor  or  the  chief  accountant  of  the  business. 

SALES   BOOK. 


(aj 


College  City,  T.  S.,  January  11,  191_. 


Items 


Udse . 


Park  Grooery  Company,  Beaconafield 

Sales  1.   30d.  BubJ,  to  draft 

600  lbs.  Armour  S.  JlnnR  15f\ 

Z   hlf.  chats.  Ene*  Break.  Tea  150#  4 


J*  C.  JDowell  fc  Co.,  Morcan  Hill 

Sales  2.  l/2  oaoh,  bal,  note  30d.  with  Int. 

3  brls.  Gran.  Sugar,  360,358,357,  -  .1075#  4.95 

1  sic..      "      "     100*  4.95 

4  sks.  S.  C.  Rice  800#  7^ 

2  hlf.  chats.  Y.  H.  Tea  140#  30^ 

2  "      "   Ene.  B.   ••   150#  40jl( 

3  •♦      •»   Unc.  Jap  "   I50#  40^ 
400  brl8.  Plour,  "Pillsbury's  Beat**  5.77^ 

-  28  - 
McConnell  &  Company,  Fairfax 

Salon  3.   30d.  acceptance 

1  brl.  Gran.  Sugnr  360#  4.95 

2  hlf.  chsta.  Gunpowder  Tea  150#  33^ 
100  brls.  Flour,  "Pillabury's  Best"                5.77^ 

1  sk.  Japanene  Rice  100#  S^4 

-  Feb.  11  - 
Anderson  &  Anderson,  Albla 

Sales  4.   30d.  2/10  canh,  l/lO  note  30d,  6% 

2  hlf.  chats.  Y.  H.  Tea  140#   37  l/2^  less  20^ 

4  sks.  S.  C.  Rice  e00#    6^  64.00 

50  brls-Pillsbury's  Best, 49-lb. sks.   6.60  330.00  394.00 
Less  12  l/Zf,  49.25 

Footing  forward 


90 
60 


,53 
4 
56 
43 
60 
60 
2310 


17 

49 

577 

3 


42 


344 


00 
00 


21 
95 
00 
00 
00 
00 
00 


97 
50 
50 
50 


00 


75 


150 


2506 


648 


386 


3771 


00 


16 


47 


75 
38 


158 
..  (b) 


CAMPBELL'S  ACTUAL  ACCOUNTING 
February  21       


Broneht    forward 

McConnell   &    Company,  Fairfax 

Sales    5.       60d.    2/10    OABh,    l/lO   note    30d. 
100   brls.    "Plllsbury '6    Best" 
50   brls.    Roman   ^eauty   Apples 


P.    H.    Burns,  Girard 

Sales    6.       60d,    2/l0    cash,    l/lO    note    30d. 

Gran.    Suear,    356,    362,    359,    363,    -    1440# 
Roman    Beauty    Apples 
Flour,    "Plllsbury'B    Best" 


4   brls. 
10    " 
20   •• 


6.77^ 
2.60 


5.6B^ 

3.20 

6.60 


Lean    12    I/25J 


577 
14'0 


81 

32 

132 


246 
30 


3771 


717 


38 


50 


214 


4703 


78 


66 


122.  The  Three-Column  Journal.  Now  that  we  have  arranged  to  enter  all  our  sales  in  the 
sales  book,  thus  relieving  the  journal  of  these  entries,  we  will  arrange  to  enter  our  merchandise 
purchases  in  a  very  similar  manner  by  making  use  of  an  extra  debit  column  in  the  journal,  in 
which  the  items  of  all  merchandise  debits  (invoices  bought)  will  be  placed  just  as  merchandise 
debit  items  were  extended  into  the  central  left  hand  column  in  your  six-column  journal.  These 
items  will  not  be  posted  separately  but  will  be  totaled  at  the  foot  of  each  page  and  carried  forward 
to  the  top  of  the  page  following.  At  the  bottom  of  each  page,  when  preparing  to  carry  this  foot- 
ing forward,  it  will  be  necessary,  now,  to  add  all  other  columns  just  as  you  did  in  the  use  of  the 
six-column  journal  and  to  prove  the  accuracy  of  both  entries  and  additions  by  making  the  sum 
of  the  merchandise  debit  and  general  debit  columns  equal  the  one  credit  column.  This  will 
illustrate  for  you  one  use  of  what  is  known  as  the  Three-Column  Journal.  You  can  readily  see 
that  instead  of  two  debit  columns  and  one  credit  column  we  might  have  planned  to  use  one 
column  for  all  debits  and  to  have  an  extra  credit  column  which  might  be  used  for  merchandise 
sales,  if  we  were  not  using  the  sales  book,  or  for  some  other  class  of  entries,  as  circumstances 
might  warrant.  The  form  of  three-column  journal  which  you  will  use  is  illustrated  following, 
items  being  taken  from  C.  W.  Burke's  first  journal  practice,  sections  12  to  25,  omitting,  how- 
ever, entries  that  would  naturally  fall  to  the  cash  book  or  sales  book. 

College  City,  Y.  S.,  January  2,  19.  . . 


Merchandise 

Pillsbury  Flour  Mills  Co. 

Inv.  i-P,  i-io  dating.    Net  cash. 


Merchandise 

Armour  and  Company 
Inv.  2-A,  i-io  dating. 

note  6od.  int.  6%. 


Net  y^ 


Merchandise 

Pillsbury  Flour  Mills  Co. 
Inv.  3-P,  6od.  2/30  cash 

Forwarded 


1125 

00 

1125 

cash. 

1880 

16 

1880 

cash  bal. 

5375 

00 

5375 

8380 

16 

8380 

00 


16 


00 


16 


CAMPBELL'S  ACTUAL  ACCOUNTING 
January   lo,  19.  . . 


159 


Bro't  forward 

8380 

16 

8380 

16 

Armour  and  Company 

Cash 

Bills  Payable 

Remitted  in  full  for  Inv.  2-A,  Ck.  4 

1880 

16 

940 
940 

08 
08 

and  note  i,  i-io,  6od. 

Pillsbury  Flour  Mills  Co. 
Cash 

2500 

CO 

2450 

00 

Merchandise  Discount 

50 

GO 

On  acct.  of  Inv.  3-P,  $2,500.00  less  2%.  Ck.  5 

Merchandise 

645 

18 

The  Keystone  Co. 

Inv.  4-K.    Net  6od. . 

645 

18 

Cash 

1293 

08 

Bills  Receivable 

1293 

08 

J.  C.  Dowell  &  Co. 

Received  check  and  note  i,  i-ii  3od. 

2586 

16 

for  sale  2 
Merchandise  Dr. 

9025 
1 5991 

34 
66 

9025  34 

1 

15091 

66 

123.  I.  Fill  the  orders  approved  by  your  teacher  when  your  books  were  vised  seeking  "spot 
cash"  buyers  as  instructed  in  your  preceding  day's  work  and  enter  as  per  instructions  in  119,  3 
(a).  Enter  all  other  sales  in  sales  book;  also  if  any  "spot  cash"  buyers  cannot  take  and  pay  for 
the  goods  when  you  are  ready  to  deliver  you  can  make  entry  in  the  sales  book  less  trade  dis- 
count only,  as  in  a  regular  sale,  119,  3  (c).  Make  a  sale  at  this  time  of  Dep't.  E  goods  included  in 
your  last  proof,  charging  as  in  112,  6,  then  prepare  voucher  check  and  make  entry  as  in  108,  10. 

2.  Enter  all  invoices  that  have  been  received  and  are  unentered,  checking  carefully  as  per 
previous  instructions  and  making  entry  in  your  journal  as  per  122.  You  will  observe  that  you 
are  not  being  given  much  practice  in  the  form  of  entry  in  the  cash  book  illustrated  in  118  (r). 
The  reason  is  that  a  principal  object  in  keeping  books,  besides  learning  the  amount  of  one's  loss 
or  gain  in  business,  is  to  keep  a  record  of  the  aggregate  amounts  of  transactions  with  firms  with 
whom  we  have  regular  dealings.  These  include  almost  all  creditors  in  any  business ;  and  like- 
wise customers  in  a  wholesale  or  jobbing  business.  Retail  dealers  do  not,  of  course,  keep 
accounts  with  customers  who  buy  for  cash,  the  entry  for  such  sales  being  simply  a  credit  to  mer- 
chandise in  the  cash  book  with  the  explanation  "cash  sales"  and  including  usually  the  entire  trans- 
actions for  a  day  as  shown  by  the  cash  register. 

3.  Make  payment  for  invoices  received  from  students,  paying  cash  (if  you  have  the  cash) 
for  at  least  half  of  the  bills  that  have  come  in  and  for  all  of  them  if  there  be  no  more  than  three 
or  four.  If  you  are  entitled  to  discount  on  any  of  these  bills  make  entry  for  such  in  your  journal 
as  in  former  work  and  post  the  cash  to  the  cash  book  as  in  (t)  and  (u)  in  118;  if  you  pay  cash, 
without  discount,  enter  directly  in  the  cash  book  as  in  118  (s).  Entries  for  payment  by  note  or 
acceptance  will  be  made  as  formerly  in  the  journal. 


i6o 


CAMPBELL'S  ACTUAL  ACCOUNTING 


4.  Make  entry  for  all  unentered  payments  received  for  sales,  following  instructions  given  in 
your  preceding  day's  work  119,  5  and  6. 

5.  Collect  and  pay  bills  receivable  and  payable  as  per  119    7  and  8. 

6.  Take  the  two  envelopes  marked,  Partner's  Withdrawal,  and  write  your  own  name  across 
the  end  of  one  of  them  leaving  the  other  for  your  partner.  Place  $50  to  $100  worth  of  merchan- 
dise in  your  partner's  envelope  and  the  firm's  check  for  $50  drawn  in  favor  of  your  own  name  in 
the  other.  Have  this  check  certified  at  the  bank  before  placing  it  in  your  envelope.  Make 
entry  for  these  transactions  as  follows : 

(a)  Charge  E.  H.  Wemple  (private  account)  with  the  merchandise  at  cost,  making  the  entry 
in  the  journal  instead  of  the  sales  book  as  this  is  not  a  sale  at  regular  prices  and  should  go 
itemized  to  the  ledger. 

(b)  Charge  your  account  (Private)  with  the  $50  check  in  the  cash  book.  This  check  was 
certified  not  specially  to  guarantee  it  to  be  good  but  to  put  it  through  the  firm's  account  in  the 
bank. 

7.  Pay  freight  bills. 

8.  Place  orders  for  merchandise  with  two  of  your  wholesale  houses,  writing  in  each  case  a 
carefully  worded  letter  in  which  you  will  state  that  their  last  shipment  of  some  article  which  you 
may  select,  was  of  a  very  inferior  grade  to  what  you  have  been  regularly  receiving  from  their 
house,  and  insist  that  unless  you  should  positively  instruct  them  to  the  contrary,  your  orders 
must  always  be  filled  with  first-class  goods.  State  that  while  you  have  been  able  to  dispose  of 
most  of  the  stock  received,  a  great  many  complaints  have  come  in  as  to  the  quality  of  the  goods 
and  that  only  your  previous  reputation,  and  pledges  of  future  satisfaction  have  saved  you  from 
losing  custom.  Ask  teacher  for  special  criticism  on  this  letter  when  you  present  it  for  his  vise. 
When  these  orders  are  filled,  prepare  your  usual  customers'  orders  for  another  day's  work 
ready  for  submission  to  your  teacher. 

9.  Made  daily^  closing  91,  11  except  (b)  and  arrange  your  books  for  inspection  as  per  98, 
submitting  your  customers'  orders  and  duplicate  copy  of  the  daily  report,  having  first  carefully 
copied  it  in  the  form  below. 

REPORT 

Report  of  School  Duties:    I  take  bookkeeping Hours  a  day. 

Hours  worked  since  last  report ,  Absent Total No.  of  Letters  written 

No.  of  Invoices  bo't  of  wholesale  houses Of  students ,   Total 

No.  of  Payments  made  in  cash ;  in  notes ;    in    acceptances ;    Total 

No.  of  Payments  rec'd  in  cash ;   in  notes ;    in    acceptances ;     Total 

No.  of  Sales  made:     To  T.   &   T.  Co ;    to  students ;  Total  No ,  $ 

No.  of  Entries  made Average  per  hour Time  on  trial  balance hours. 


NOTES 

CASH 

Mills  Receivable,  Ledger  Balance 

Ledger  Balance 

7otal  uncollected,  in  bill  book 

In  bank,  Stb.  No.         ,  

In  safe,  Currency 

Total  value  of  notes  in  the  safe 

In  nafn,  Chficks, 

Bills  Payable,  Ledger  Balance 

Total  unpaid  in  bill  book 

Total  Cash  on  hand 

Respectfully  submitted. 


.191.... 


1.     See  Footnote  on  opposite  page. 


TEACHER'S 


STAMP 


CAMPBELL'S  ACTUAL  ACCOUNTING 


i6i 


124.  I.  Fill  your  customers'  orders  without  seeking  any  "spot  cash"  buyers  for  this  day's 
work  and  enter  all  sales  in  the  sales  book  as  illustrated  in  the  form  in  121  preceding. 

2.  Enter  in  three-column  journal  all  unentered  invoices  that  have  been  received  since  en- 
tering last  day's  work,  checking  carefully  as  per  previous  instructions. 

3.  Make  payment  for  invoices  received  from  students,  making  at  least  half  of  these  pay- 
ments by  note  or  acceptance  and  entering  such  payments  in  the  journal.  Enter  cash  payments,  as 
instructed  in  119,  6. 

4.  Make  entry  for  payments  received  as  per  previous  instructions. 

5.  Collect  all  bills  receivable  and  pay  all  bills  payable  that  have  matured,  making  entry  as 
in  iig,  7  and  8.   Pay  freight  bills. 

6.  Draw  the  firm's  check  in  favor  of  E.  H.  Wemple  for  $50,  and  charge  it  to  his  private 
account  as  before. 

6.  In  reply  to  your  letters  of  complaint,  each  of  the  wholesale  houses  has  written  you  a 
letter  of  explanation  and  apology  and  has  quoted  you  in  compensation  for  the  annoyance  and 
possible  loss  caused  by  their  shipment  of  inferior  goods,  a  special  discount  equal  to  25  per  cent, 
of  the  cost  of  the  goods  complained  of.  Reply  to  these  letters  inclosing  in  each  case  your  check 
in  full  for  the  previous  order  less  whatever  discounts  you  are  entitled  to  by  the  terms  of  the 
invoice,  and  deducting  also  the  special  discount  quoted  you  in  compensation  for  the  inferior  ship- 
ment. State  carefully  what  discounts  you  are  claiming  and  the  amount  of  the  check  inclosed  to 
balance  the  account  and  express  your  satisfaction  with  their  action  and  the  hope  that  it  may 
not  again  prove  necessary.  For  a  careful  itemizing  of  discounts,  etc.,  claimed,  see  form  of  letter 
by  C.  W.  Burke  in  61  (c).  Enclose  orders  as  usual  for  additional  merchandise  for  your  business 
and  when  the  goods  arrive,  prepare  yovir  customers'  orders  for  your  teacher's  approval.  Make 
dailyi  closing  as  in  91,  11,  except  (b)  and  arrange  your  books  for  teacher's  inspection,  submitting 
your  customers'  orders,  and  your  duplicate  report,  having  carefully  filled  out  the  form  below. 

REPORT 

Report  of  School  Duties:    I  take  bookkeeping Hours  a  day. 

Hours  worked  since  last  report Absent Total No.  of  Letters  written 

No.  of  Invoices  bo't  of  wholesale  houses Of  students: ,   Total 

No.  of  Payments  made  in  cash ;   in  notes ;    in    acceptances ;    Total 

No.  of  Payments  rec'd  in  cash ;   in  notes ;    in    acceptances ;     Total _ 

No.  of  Sales  made:     To  T.   &  T.  Co ;    to  students ;   Total  No ,  $ 

No.  of  Entries  made Average   per  hour Time  on  trial  balance hours. 


NOTES 


Bills  Receivable,  Ledger  Balance 

Total  uncollected  in  bill  book 

Total  value  of  notes  in  the  safe. 

Bills  Payable,  Ledger  Balance 

Total  unpaid  in  bill  book 


CASH 


Ledger  Balance 

In  bank,  Stb.  Nc 
In  safe,  Currency 
In  safe,  Checks,  _ 


Total  Cash  on  hand. 


Respectfully  submitted, 


.191. 


TEACHER'S 


STAMP 


1.  For  cash  book  posting  see  120,  5,  and  observe  that  in  posting  the  Sales  Book,  each  item  posts  to  the  debit 
of  the  customer's  account  and  the  total  of  all  the  items  ruled  as  shown  in  121  (b),  is  posted  to  the  credit  of  Mer- 
chandise. For  the  Three-Column  Journal  see  122,  and,  if  there  is  anything  that  you  do  not  understand,  consult 
your  teacher. 


i62  CAMPBELL'S  ACTUAL  ACCOUNTING 

125.     I.     Fill  orders,  entering  in  sales  book  aS  in  124.   See  form  in  121. 

2.  Make  entry  for  all  unentered  invoices  as  per  previous  instructions.  Check  carefully; 
accept  no  one's  computations  but  your  own.  In  making  entry  for  cash  invoices  you  may,  if  you 
wish  to  do  so,  discount  bills  that  have  not  matured  2%  and  make  no  entry  except  in  the  cash 
book;  but  remember  that  you  will  need  to  account  for  this  extra  discount  in  the  proof.  It  will 
be  like  but  opposite  to  the  discount  authorized  in  119,  3  (a),  and  discussed  in  120,  6  (b).  This 
will  make  you  some  extra  work  in  proving  but  the  extra  drill  will  be  worth  it. 

3.  Make  payment  for  invoices  received  from  students,  paying  as  many  of  them  as  possible 
in  cash  and  making  entry  in  your  cash  book.  See  comment  in  2  above.  If  compelled  to  make 
payment  by  note  or  acceptance,  enter  in  journal. 

4.  Make  entry  for  payments  received  from  customers,  entering  cash  in  cash  book  when 
payment  is  made  without  discount;  otherwise,  enter  in  journal  and  post  cash  to  cash  book.  For 
payments  that  are  not  cash,  make  entry  in  journal. 

5.  Place  your  usual  orders  with  the  wholesale  houses,  writing  carefully  worded  letters. 
Remit  in  cash  for  previous  orders  less  discounts  and  make  entry  as  per  instructions  in  3  above. 
When  these  goods  arrive,  prepare  your  customers'    orders    as    usual    for    teacher's    inspection. 

6.  Collect  all  bills  receivable  and  pay  all  bills  payable  that  have  matured,  making  entry  as 
in  former  work.     Pay  freight  bills. 

7.  Credit  each  partner  on  private  account  with  his  salary  for  the  month  and  charge  Salaries, 
then  debit  each  partner  on  private  account  with  interest  on  his  withdrawals  for  the  time  since  each 
was  withdrawn  counting  each  actual  day  as  ten  days  (see  91,  4  (c),  footnote  2),  and  credit  Interest 
and  Discount.  Also  credit  each  partner  in  the  same  manner  with  interest  on  his  capital  for  the 
time  it  has  been  employed,  and  debit  Interest  and  Discount.  A  better  plan  for  this  entry  will  be 
shown  later,  better  because  shorter,  though  this  is  the  best  for  the  student  to  study  in  his  first 
dealing  with  interest  as  an  element  of  a  partnership  contract.  Read  carefully  the  interest  pro- 
vision in  the  contract  between  yourself  and  Mr.  Wemple  which  you  have  filed  in  the  Receipts 

Compartment  of  your  filing  case. 

8.  Make  daily  closing  as  in  91,  11,  but  omitting  (b)  and  (h),  until  after  proof  of  Merchandise. 
Then,  prove  the  accuracy  of  your  work  from  the  beginning  of  this  outline   (see   106,  30)    and 

when  you  have  found  all  the  mistakes  shown  to    exist,    by    your    expert  TEACHER'S 

report,  correct  them  under  your  teacher's  instruction ;  then  take  your  trial 
balance,  and  arranging  your  books  for  teacher's  inspection  as  per  98, 
submit  with  them  your  customers'  orders,  your  expert  report,  the  work  done 


in  finding  mistakes,  and  the  usual  duplicate  copy   of  the   full   report   care-  STAMP 

fully  filled  out  in  the  form  following: 

9.  When  your  teacher  has  accepted  your  work  to  this  point  and  placed  his  stamp  in  the 
margin,  you  will 

(a)  Proceed  to  make  out  the  balance  sheet  as  in  113-115,  remembering  that  under  the  con- 
tract, the  differences  between  investments  have  been  adjusted  by  the  interest  entries  in  7 
above  and  that  the  partners  are  to  share  equally  in  the  losses  and  gains. 

(b)  Close  your  ledger. 

(c)  Close  other  accounts  as  instructed  in  83  (a)  and  (b). 

(d)  Carefully  trial  balance  your  ledger  after  closing  and  make  out  a  Business  Statement,  or 
analytical  form  of  balance  sheet  as  in  107,  (e)  and    (f),    for  your  teacher's   filing. 

(e)  When  this  is  completed,  leave  at  the  teacher's  desk  your  cash  book,  sales  book,  journal, 
ledger,  bill  book  and  trial  balance  book,  and  while  your  teacher  is  grading  them,  study  section 
126  that  you  may  be  ready  to  begin  Outline  IV. 


CAMPBELL'S  ACTUAL  ACCOUNTING 


163 


REPORT 

Report  of  School  Duties:    I  take  bookkeeping Hours  a  day. 

Hours  worked  since  last  report ,  Absent Total No.  of  Letters  written 

No.  of  Invoices  bo't  of  wholesale  houses : Of   students ,   Total 

No.  of  Payments  made  in  cash ;  in  notes ;    in    acceptances ;    Total 

No.  of  Payments  rec'd  in  cash ;   in  notes ;    in    acceptances ;     Total 

No.  of  Sales  made:     To  T.   &  T.  Co ;    to  students ;  Total  No ,  $ 

No.  of  Entries  made Average   per  hour Time  on  trial  balance hours. 


NOTES 

CASH 

Bills  Beceivable^  Ledger  Bala 

Qce 

Ledger  Balance 

Tn  bank,  Stb.  No.         , 

Total  value  of  notes  in  the  safe . 
Bills  Payable,  Ledger  Balance 
Total  unpaid  in  bill  book 

In  safe,  Currency 

Tn  safft,  Chftcks, 

1 

Total  Cash  on  hand 

MERCHANDISE 

Department  A 
Goods 

Department  E 
Goods 

TEACHER'S  MARKING 

Cost  of  Mdse.  bought 

Accuracy 

Neatness 

Orderliness 

3 

2 
2 
2 

1 

Present  inventory 

Cost  of  goods  sold  

Sales  of  merchandise 

Records 

Gain,  red  ink"  Loss,  black 

Progress 

Errors:  Ourfvr.  red;  cent,  black 



Average .    . 

TEACHER'S 


Respectfully  submitted, 


191....  STAMP 

10.     Form  of  Receipt  for  a  Lost  or  Stolen  Note.     (A  good  and  sufficient  bond  is  usually  re- 
quired as  additional  protection.) 


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l64  CAMPBELL'S  ACTUAL  ACCOUNTING 


OUTLINE  IV. 


126.  I.  Your  work  in  this  outline  will  be  a  continuation  of  your  partnership  but  with  a 
considerable  change  in  your  system  of  accounting,  although  you  will  use  for  the  most  part  the 
same  books ;  namely,  the  Cash  Book,  Sales  Book,  Journal  and,  for  merchandise  purchased,  an 
Invoice  Book.  The  Invoice  Book,  while  the  only  one  of  the  set  with  which  you  have  not  been 
previously  acquainted,  is  the  simplest  of  the  books  to  be  used  while  working  the  outline  and  will 
be  explained  first. 

Take  your  Invoice  Book  from  your  supplies  and  open  it,  comparing  it  with  form  in  128  on 
the  page  opposite.  Observe  that  the  form  represents  invoices  pasted  into  a  book  like  the  one 
furnished  you  for  this  work,  the  amount  of  each  invoice  being  extended  into  one  of  the  money 
columns  to  the  right  of  the  page.  Observe  also  that  this  extension  of  the  amount  of  the  bill 
(observe  the  bill  entered  at  foot  of  page)  is  made  directly  opposite  the  name  of  the  creditor  and 
that  the  page  of  the  ledger  on  which  the  creditor's  account  is  found  appears  as  the  posting  check 
in  the  red  ink  form  following  the  word  Entered,  which  is  no  longer  needed  to  indicate  the 
journal  page.  Pasting  in  the  invoice  and  extending  the  amount  is  all  the  entry  that  it  is  neces- 
sary to  make  for  any  invoice  received  while  working  this  outline.  Before  proceeding  with 
other  work,  you  may  immediately  take  up  all  invoices  that  have  been  received  since  your  last 
closing  and  carefully  checking  them  according  to  your  previous  instructions  (see  91,  5),  proceed 
to  fasten  them  permanently  in  your  invoice  book  with  paste,  being  careful  to  number  and  ar- 
range them  properly  as  instructed  below. 

(a)  Paste  the  first  invoice  firmly  at  the  top  of  the  page  and  extend  the  amount  into  the 
the  first  to  expose  all  the  upper  part  of  the  first  bill — all  except  the  figures,  and  paste  to  the  page 
of  your  book  that  part  of  the  second  bill  which  extends  below  the  first,  leaving  the  part  which 
covers  the  first  bill  entirely  free,  so  that  it  can  be  lifted  up  in  order  to  show  the  lower  part  of  the 
first  bill.  Extend  the  amount  as  in  the  first  invoice,  (c)  Continue  with  the  other  invoices  in  the 
same  manner  until  your  page  is  full.  Then  ruling  neatly  across  the  columns  of  extended  amounts, 
add  the  columns  and  carry  the  footings  forward  to  the  top  of  the  next  page.  Since  your  invoice 
book  has  two  ruled  money  columns  (it  may  have  more)  the  two  columns  may  be  used  for  items 
and  totals  as  you  used  the  two  columns  on  either  page  of  your  cash  book ;  or  if  the  business  of 
the  firm  be  such  that  goods  are  received  belonging  to  different  departments  of  the  business,  each 
column  of  the  invoice  book  may  represent  a  department  and  the  total  of  an  invoice  would  then 
be  extended  into  the  column  representing  the  department  to  which  it  belongs,  or  if  in  any  invoice 
there  be  items  belonging  to  different  departments  these  items  would  be  separately  extended  into 
the  respective  departments  to  which  they  belong.  In  your  business  one  column  may  be  used  for 
Branch  House  Merchandise  received. 

127.  TJie  Sales  Book.  This  book  in  this  outline  will  be  similar  to  the  sales  book  with  which 
you  are  familiar,  but  will  have  one  additional  column.  Of  the  three  columns,  use  the  left  hand 
column  for  extensions,  and  the  right  hand  for  the  totals  of  merchandise  sold ;  the  central  column 
you  will  use  for  various  purposes  and  you  may  mark  it  "Sundries."  The  principal  use  for  it  will 
be  found  in  the  sale  of  consignment  goods  but  it  may  be  used  for  the  amount  of  any  sale  that  is 
not  your  own  merchandise.  Readjust  your  loose-leaf  Sales  Book  to  bring  in  3-column  pages  at 
this  time. 


CAMPBELL'S  ACTUAL  ACCOUNTING 


165 


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Nos.  71  and  73  East  Santa  Clara  Streebp^g 


0..  f.  BiuLk^,      Coii#ee  cit»»    Tj_8_. 


'CoHacrct  I*  flx  toiHbuld  of  ClvfllHUtM" 


PBOPRISTOBS    OF 

REVERE  COFFEE  MILLS 

AKD 

SPURR'S  REVERE  COFFEE 


2275   -   27   Direct 
SoMtt.     C«    W.    Bttrlw, 

Oollee*   OUy,   T.   8.; 


FAT  DO  Monr  TO  Aonrrs  ok 


J«a.  S8,  19 


RECEIVEDi2«r»S^yr..l9/..... 

enteredCs-! _ 

NO.  AND  RLE  LETTEFl/<r/... 


BOSTON 

CHICAOO 

KANSAS   CITY 

WTT88UHO 
MINNEAPOLIS 

T9MM  TO  Taa  DOTS  AHD  ODtLa 
OF  THS  UMiTBU  0TATBS 

«'  or*  «f  Pwl  R(vtr«  in 

two  volume* 

Ck«PailK<v<K  PiMb 


60  a«r«  <np  z%  10  day* 


Thisbilhs  payatile  withouf refie/ from  vakjotion or appfofswntnrigwa  andbecomea  imnwrntS^S 
suspension  of payment,tt>c  entering  of  suit  against purcttaser  orwhen  purchaser  setts  At/iMAMJSTJ^fiot\Jt^^fikAf^if^^^fpff^4l^^ 
a/t&npts  orpfxxeeds  to  close  out  Oustness  orputcnosers  failure  fophmfi^Moai^^iL^'Uj^^^^if^     ^  * ' 


NO.  AND  FILE  LETTER^^,;!^ 


O.A.SCHNUU-x 


•vficp.  G  omrfnit 


ADiscounl  ofTwopntCpnl  will  Ite  niUttfptl 

mtkishwoim  if  paid  wUfunWiikxj'^frofnifiite, 

fntttri'M  wui  ft«  duirffed  aflgr  auttu/ify' 


ItuportemManafadiiifem  E^nem  and  Jobbers  of 

Grogeries, 

UO  tom&MeridianSl. 


Indiunupolisjnd.    jAHTJAai  ztth,  i9ii. 


Soldto    0»  W.  Burke.   Ooixege  City,   V.   8. 


The  Van  Camp  PackiwgCo,    .-^ — — 

mDIAMAPOUS.  IMD.  |  ENTERED..,V-I 


rc-i 
V 


NO.  AND  FILE  LETTER«^.<i/.. 


SOLD  TO      0.  W.  Bnrke,. 
Address      Coll«e*   City,    T.   8* 
Ship  To        SAMS 

eUYER-S    No. 


Date     jah.   SO,   1911. 
Terms      80  BATS 

Cash  ukss  «  1-2  Ptn  Ocmt.  Tsn  Days 


Freight     COLLXCT 
«VlA         ?.   R. 


6  08  #1   PORK  ft   BKAH3   T.S* 

•  C8   #2   ?OBK  k   B2AH3   T.S. 

10'  08   #8   POBK  k   BSAH8   1.8. 


£0      ,^t\^    16.80 
10   1.26  12.60 

20  1.60  82.00 


61    00 


CVARAKTCC.    Goodf  on  ihi«  iav( 
CAUTION.     Doa'l  alloH  tour  m*" 


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CAMPBELL'S  ACTUAL  ACCOUNTING 


129 


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ACCOUNT  CREDITED 


EXPLANATION 


CUSTOMERS   LEDGER 


CASH    RECEIPTS 


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130.  The  Cash  Book.  Your  cash  book  in  this  outline  will  have  three  columns  on  each  side 
instead  of  two  as  formerly,  and  each  column  will  have  a  distinct  use.  Mark  the  columns  of  your 
cash  book  as  shown  in  the  form  in  129  except  that  Accounts  Receivable  might  be  written  instead 
of  Customers'  Ledger  and  Accounts  Payable  instead  of  Creditors'  Ledger.  In  the  cash  book 
you  have  just  been  using,  you  will  remember  that  you  did  not  enter  cash  directly  when  merchan- 
dise discount  was  considered  a  part  of  the  payment,  but  that  you  made  the  entry  in  your 
journal  and  posted  the  cash  to  the  cash  book.  Now  all  such  entries  will  be  made  directly  in  the 
cash  book,  the  amount  of  merchandise  discount    being    entered    separately "  in    the    Discount 


CAMPBELL'S  ACTUAL  ACCOUNTING 


167 


c&U(Si. 


ACCOUNT    DEBITED 


EXPLANATION 


CREDITORS-  LEDGER 


OIS  PAYMENTS 


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column,  and  the  amount  of  cash  received  in  the  Cash  Receipts  column ;  or,  if  it  be  cash 
paid  out,  in  the  Cash  Payments  column.  Study  carefully  the  form  of  cash  book  in  129  and 
observe  how  the  discounts  are  entered,  totaled  and  posted.  Do  not  be  discouraged  because  you 
find  it  difficult  to  understand  every  step  of  your  work  at  first,  for  the  subject  that  you  are  taking 
up  now  is  the  hardest  subject  that  you  will  encounter  at  any  time  in  your  course,  but  it  is  one  that 
will  not  be  made  easier  by  postponing  it,  while  it  will  grow  easier  by  practicing  it.  When  you 
have  carefully  plodded  through  your  first  day's  work  and  have  taken  your  first  trial  balance,  you 
should  begin  to  understand  the  work  of  this  outline.  But  read  very  carefully  every  word  of  your 
instructions  and  consult  your  teacher  at  any  time  that  you  do  not  clearly  see  what  is  meant. 


1 68 


CAMPBELL'S  ACTUAL  ACCOUNTING 


131.  The  Journal.  You  will  use  in  this  set  what  is  termed  a  four-column  journal.  Observe 
that  two  of  these  columns  are  on  the  left  hand  and  two  on  the  right  hand  side  of  the  entries  after 
the  style  of  your  six-column  journal.  Observe  further  that  the  two  inner  columns  are  marked 
General  Ledger  and  of  the  outer  columns  that  the  one  to  the  left  is  marked  Creditors'  Ledger 
and  the  one  to  the  right.  Customers'  Ledger.  With  these  explanations  you  are  now  ready  to  open 
your  books. 

132.  Enter  in  your  four-column  journal  at  the  head  of  the  page  a  statement  and  entry  similar 
to  the  following,  the  resources  and  liabilities  of  which  are  taken  from  the  Business  Statement  of 
C.  W.  Burke  &  Co's.  business  on  March  31 ;  but  take  your  figures  from  the  Resources  and 
Liabilities  of  the  Business  Statement  which  you  have  just  rendered  at  the  close  of  Outline  IIL 


133 


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CAMPBELL'S  ACTUAL  ACCOUNTING 


169 


(a)  Check  the  items  of  the  opening  entry  in  133  with  the  accounts  in  your  practice  ledger 
and  observe  that  all  the  figures  entered  in  the  sundries  columns  are  to  be  found  in  the  ledger  on  the 
page  indicated,  except  the  two  items  marked  Accounts  Receivable  and  Accounts  Payable  and  that 
for  these  you  can  find  only  the  personal  accounts  composing  them.  Now  open  two  new  accounts 
in  your  practice  ledger  (the  ledger  of  C.  W.  Burke  &  Co.)  on  page  15,  entitling  one  of  the  new 
accounts  Accounts  Receivable  and  the  other  Accounts  Payable,  and  posting  to  each  of  them 
the  amount  entered  against  that  title  in  the  opening  entry  in  133. 

(b)  Check  the  opening  entry  of  your  own  business  with  the  accounts  in  your  ledger  in 
exactly  the  same  way,  opening  accounts  with  Accounts  Receivable  and  Accounts  Payable  on 
pages  32  and  ^^  of  your  ledger  and  placing  opposite  the  name  of  each  account  in  the  opening 
entry  of  the  ledger  or  cash  book  the  page  number  as  in  other  posting.  This  finishes  all  the 
work  necessary  in  opening  the  ledger  at  this  time  since  all  other  accounts  already  have  their 
places  in  the  ledger,  except  Cash,  which  you  find  is  a  balance  brought  down  in  your  two-column 
cash  book.  Transfer  this  balance  by  red  ink  transfer  entry,  from  the  two-column  cash  book  which 
you  have  been  using,  to  the  General  Ledger  column  of  the  three-column  cash  book  which  you  will 
use  in  this  outline,  ruling  the  two-column  cash  book  with  the  usual  red  ink  closing  lines. 

134.  The  observant  student  will,  at  this  point  in  his  work,  undoubtedly  feel  that  his  ledger 
balance  is  spoiled  by  inserting  the  additional  debit  to  Accounts  Receivable  and  the  additional 
credit  to  Accounts  Payable  (items  which  do  not  balance  each  other)  when  at  the  same  time  the 
individual  accounts  which  make  up  these  totals  remain  in  the  ledger.  The  explanation  of  this  is 
that  from  this  time  on  in  your  work  you  will  not  take  the  individual  accounts  into  the  same  trial 
balance  in  which  Accounts  Receivable  and  Accounts  Payable  appear,  but  your  ledger  will  here- 
after be  divided  into  three  separate  books  (or  what  represents  three  separate  books)  known 
respectively  as  the  General  Ledger,  the  Customers'  Ledger  (Accounts  Receivable)  and  the  Cred- 
itors' Ledger  (Accounts  Payable)  ;  and  your  trial  balance  will  appear  in  three  parts  as  illustrated 
below  by  figures  taken  from  C.  W.  Burke's  ledger  immediately  after  posting  the  new  accounts 
of  the  opening  entry  preceding,  as  instructed  in  133  (a). 

135.  Illustrative   form   of  trial  balances   for  Outline  IV. 


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136.  Take  such  a  trial  balance  of  your  ledgers  now,  or  immediately  after  making  and  post- 
ing your  opening  entry.  If  you  have  a  loose-leaf  trial  balance  book,  take  separate  pages  for  the 
trial  balance  of  each  ledger,  and  with  a  bound  book  either  take  separate  pages  for  each  ledger, 
or  if  the  number  of  personal  accounts  are  not  too  many,  divide  a  page  by  ruling  the  adding  and 
footing  lines  through  the  center  of  the  page.  Balance  the  sub-ledger  trial  balance  with  red  ink 
at  the  bottom  of  the  page  and  enter  the  footings.  Accounts  Receivable  and  Payable  in  the 
general  ledger  should  always  be  balanced  so  that  the  balance  brought  down  may  agree  with 
these  red  ink  entries  in  the  sub-ledger  trial  balances. 

You  are  now  ready  to  proceed. 

1.  Draw  up  in  duplicate  a  lease  for  storeroom  for  one  year,  and  present  it  to  the  College 
Real  Estate  Company  or  to  your  teacher  for  signature.  You  will  sign  for  your  firm  on  the  sec- 
ond line.  Make  the  terms  $1,200  per  annum,  payable  quarterly  in  advance,  and  make  the  first 
payment.  You  will  find  duplicate  forms  of  lease  in  your  legal  blanks.  Pay  in  currency  and 
take  receipt.  To  obtain  this  currency  draw  your  check  in  favor  of  Cash  for  the  amount  and 
present  it  at  the  bank  for  the  money.  Make  entry  on  the  credit  side  of  the  cash  account,  plac- 
ing the  figures  in  the  sundries  column,  as  shown  in  129.  Deliver  one  copy  of  lease  to  your 
teacher  and  file  one  with  your  Receipts  and  Papers. 

2.  Make  a  shipment  to  some  student  (one  not  on  your  list  of  customers  preferred)  of  all 
the  sugar  of  E.  H.  Wemple's  stock  (see  inventory)  which  you  will  find  in  your  envelope  of  whole- 
sale merchandise.  Make  entry  in  your  four-column  journal  as  in  former  work,  see  105,  (i),  and 
106,  18,  discounting  123/2%  that  the  merchandise  may  be  credited  and  the  shipment  charged  at 
cost  so  that  the  loss  or  gain  resulting  from  this  transaction  will  appear  in  the  account  entitled 
(Consignee's  name  here)  Shipment  No.  i^  and  not  in  the  merchandise  account.  Make  out  not  only 
the  shipping  invoice  but  the  triplicate  shipping  receipts  as  in  former  work  and  deliver  goods  with 
the  shipping  order  to  your  freight  office  to  be  delivered  to  the  consignee  upon  payment  of  the 
freight  charges.  Deliver  to  the  consignee  the  shipping  invoice ;  and  duplicate  freight  receipt, 
retaining  the  original  or  stub  receipt  yourself.  The  freight  office  may  be  omitted  if  teacher  so 
instructs.     See  3  following. 


1.     Make  shipment  numbers  consecutive  to  each  consignee.     If  you  have  made  one  shipment  to  the  same 
per^?n  already  this  would  be  No.  2. 


CAMPBELL'S  ACTUAL  ACCOUNTING 


171 


3.  Solicit  a  consignment  of  merchandise  from  some  student,  consulting  your  teacher  as 
to  whom  you  would  best  apply,  and  when  you  receive  the  invoice  and  duplicate  freight  receipt 
(see  explanation  of  shipment  in  2  above)  take  the  freight  receipt  to  the  freight  office,  pay  the 
freight  bill  and  get  the  merchandise.  If  there  is  no  freight  office  and  the  goods  are  delivered  to 
you  directly  by  the  shipper,  compute  the  freight  by  the  table  of  freight  rates  furnished  in  the 
back  of  your  wholesale  price  list  and  pay  the  freight  at  the  teacher's  desk.  Make  entry  in 
your  cash  book,  General  Ledger  column,  similar  to  the  entry  in  the  six-column  form,  105  (g), 
charging.  Consignment  No.  5^  (Consignor  s  name  and  address  here),  for  the  freight  only,  as  there 
will  be  no  charge  for  advances  paid  by  draft  unless  the  consignee  has  drawn  on  you  exactly  as 
illustrated  in  the  practice.  Open  the  ledger  account,  from  the  invoice  as  instructed  in  106,  14, 
(c).  Since  you  are  using  your  invoice  book  in  this  outline  for  entering  and  filing  all  invoices  re- 
ceived (see  126,  i),  the  Merchandise  compartment  of  your  filing  case,  No.  5,  is  not  in  use  and  may 
be  used  advantageously  for  the  filing  of  the  shipping  invoices  received  with  consignments.  Place 
on  the  invoice  the  proper  memoranda,  showing  lot  number  and  filing  letter,  date  received  and  page 
of  journal  entry,  then  place  it  alphabetically  in  your  invoice   filing  compartment. 

4.  Fill  all  orders  from  customers  which  were  approved  by  your  teacher  at  last  closing,  on 
the  regular  terms  of  the  schoolroom,  and  enter  in  the  sales  book,  charging  the  purchaser  on  ac- 
count and  extending  the  amount  into  the  right  hand  merchandise  column.  See  forms  in  121  (a) 
and  (b).  Sell  Dep't.  E  goods  to  T.  &  T.  Co.,  preparing  voucher  check  for  approval  as  in  former 
sales. 

5.  Oberve  that  in  pasting  invoices  received  into  the  invoice  book  as  illustrated  in  126  and 
128,  you  have  made  entry  for  purchases  received  to  that  date.  If  any  invoices  have  been  re- 
ceived since,  paste  them  into  the  invoice  book  in  like  manner  and  proceed  to  pay  for  all  invoices 
bought  from  students  as  follows : 

(a)  Pay  by  acceptance  or  note  all  bills  with  which  the  draft  or  blank  note  has  been  sent 
out  by  the  seller,  being  careful  to  observe  that  all  amounts  are  correct.  Make  entry  in  your  jour- 
nal, debiting  the  creditor  in  the  Accounts  Payable  column  and  crediting  Bills  Payable  in  the 
Sundry  column  with  proper  explanation  as  in  form  below. 


y^:5^c 


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(b)  Pay  for  other  invoices  received,  by  note  or  in  cash,  so  planning  your  payments  that  of 
all  the  bills  paid  in  this  day's  work,  at  least  one-half  will  be  by  note  or  acceptance.  Cash  pay- 
ments will  be  entered  in  the  cash  book  on  the  credit  side,  the  amount  of  the  check  or  currency 
being  placed  in  the  Creditors'  Ledger  column  and  the  amount  of  Mdse.  Disct.,  if  any,  being  placed 
in  the  Discount  column. 

(c)  Pay  at  least  one  and  preferably  two  invoices  that  call  for  cash,  by  drawing  at  sight,  on 
some  one  who  owes  you,  in  favor  of  your  creditor  (see  instructions  in  109,  2,  b).  Cash  pay- 
ment made  by  sight  draft  not  being  cash  to  you  (but  counted  cash  by  the  one  who  receives  it) 
will  be  entered  in  your  four-column  journal  charging  the  creditor  in  the  Creditors'  Ledger  col- 
umn, and  crediting  the  drawee  in  the  Customers'  Ledger  column  as  in  the  form  following,  the 
discount  being  entered  in  the  General  Ledger  column. 


1.  Make  consignment  numbers  consecutive  throughout  your  practice.  This  is  much  more  convenient  In 
marking  the  goods  in  the  warehouse.  It  is  called  the  hot  No.  It  is  followed  by  the  consignee's  initial  in  refer- 
ences merely  as  an  index  to  the  filing  case. 


172 


CAMPBELL'S  ACTUAL  ACCOUNTING 


3^^^^' 


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6.  Make  entry  for  all  payments  that  have  been  received  since  last  closing,  carefully  dis- 
tinguishing between  payments  of  accounts  (payment  for  bills  rendered)  and  payment  of  notes 
or  acceptances.     Enter  all  payments  of  accounts  as  follows : 

(a)  For  notes  or  acceptances  that  have  been  received  in  payment  of  accounts,  make  entry  in 
your  four-column  journal  debiting  Bills  Receivable  and  Mdse.  Disct.  (if  any),  in  the  Sundry  col- 
umn and  crediting  your  customer  in  the  Customers'  Ledger  column  with  proper  explanation  as 
in  the  form  below. 


^/•^o^ 


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(b)  For  payments  received  in  cash,  including  sight  drafts,  make  entry  on  the  debit  side 
of  your  cash  book  placing  the  amount  of  the  check,  currency,  bank  draft,  or  sight  draft,  in 
the  Cash  Receipts  column  and  the  amount  of  discount,  if  any,  in  the  Discount  column. 

(c)  For  payments  received  for  notes  or  acceptances,  make  entry  on  the  debit  side  of  your 
cash  book  in  the  sundries  column  for  the  face  of  the  note  or  acceptance  crediting  Bills  Re- 
ceivable ;  and  on  a  separate  line,  immediately  following  the  entry  for  the  note,  make  entry  credit- 
ing Interest  and  Discount  for  the  cash  received  for  interest,  placing  the  figures  also  in  the  sun- 
dries column.    See  iig,  7  and  8,  or  the  entry  for  Feb.  10  in  cash  book  form  in  129. 

7.  To  close  the  Cash  Book,  (a)  Add  each  column  of  your  cash  book  in  pencil  and  make 
a  penciled  proof  of  your  cash  exactly  as  in  former  cash  book  work,  but  omitting  from  this  pen- 
ciled computation  the  footings  of  the  Mdse.  Disct.  columns  and  adding  together,  to  make  your  cash 
debit,  the  footings  of  Cash  Receipts  and  Sundries  on  the  debit  side  and  to  make  your  cash 
credit,  the  footings  of  Cash  Payments  and  Sundries  on  the  credit  side. 

(b)  When  cash  proves,  draw  a  single  red  ink  line  across  all  three  columns  of  each  page  im- 
mediately below  the  figures  and  enter  the  footings  in  ink.  Red  ink  is  sometimes  used  for  the 
footings  of  the  discount  columns  to  distinguish  them,  as  these  do  not  represent  cash  either  re- 
ceived or  paid  out. 

(c)  Rule  the  Mdse.  Disct.  and  Cash  Receipts'  and  Payments'  columns  with  double  lines 
beneath  these  footings,  and  make  entry  below  these  lines  for  the  total  cash  received  or  paid  out 
as  follows : 

(i)  On  the  debit  side  of  the  cash  book  enter  to  the  credit  of  Accounts  Receivable  the  sum 
of  the  footings  of  the  Cash  and  Discount  columns  representing  the  Customers'  Ledger  and 
carry  the  amount  into  the   General   Ledger  column,  as  shown  in  129,  on  debit  side  of  form. 

(2)  On  the  credit  side  of  the  cash  book  make  entry  charging  Accounts  Payable  for  the 
sum  of  the  footings  of  the  Cash  and  Discount  columns  representing  the  Creditors'  Ledger  and 
carry  the  amount  into  the  General  Ledger  column,  as  shown  in  129  on  the  credit  side. 

(d))  Observe  now  that  you  have  debited  Cash  for  the  footing  of  the  Mdse.  Disct.  column 
which  was  not  cash  received  and  that  you  have  credited  Cash  in  the  same  way  for  the  footing  of 


CAMPBELL'S  ACTUAL  ACCOUNTING 


173 


the  Mdse.  Disct,  column,  which  was  not  cash  paid  out,  and  that  this  disturbs  the  balance  of 
cash  as  proved  in  pencil  above.  Proceed  to  correct  this  condition  by  crediting  Mdse.  Discount 
in  the  General  Ledger  column  on  the  debit  side  of  your  cash  book  for  the  amount  of  the  footing 
of  that  column  on  the  credit  side  of  the  book,  and  by  debiting  Mdse.  Discount  in  the  General 
Ledger  column  on  the  credit  side  of  your  cash  book  for  the  amount  of  the  footing  of  the  Mdse. 
Disct.  column  on  the  debit  side.  These  two  entries  will  restore  your  cash  balance  and  place 
the  amount  of  the  Mdse.  Disct.  in  proper  shape  for  footing.  Make  your  cash  balance  entry 
in  red  ink,  as  formerly,  itemizing  separately;  first,  the  balance  in  bank  and  then  the  amount  of 
money,  if  any,  in  your  safe,  listing  separately  the  currency  and  each  check  as  in  former  closings. 

(e)  Before  leaving  the  subject  of  the  Cash  Book,  post  all  items  from  your  cash  book  to 
your  various  ledgers  as  follows : 

First,  post  all  items  (except  the  cash  balance  and  footings)  found  in  the  General  Ledger 
columns  to  the  respective  accounts  in  your  general  ledger  exactly  as  in  the  posting  of  the  cash 
book  of  Outline  III,  noting  that  this  instruction  applies  also  to  the  totals  of  Mdse.  Discts.  and 
Accounts  Receivable  and  Payable  that  are  entered  below  the  first  closing  lines. 

Second,  post  the  items  from  the  columns  marked  Customers'  Ledger  and  Creditors'  Led- 
ger to  the  personal  accounts  in  your  customers'  and  creditors'  ledgers  respectively,  posting  to 
each  name  first,  the  amount  of  cash  received  or  paid  out  as  indicated  by  the  entry,  and  immediately 
under  this  amount,  the  amount  of  merchandise  discount  appearing  opposite  the  name  in  the 
Discount  column  of  the  cash  book.  No  explanation  will  be  needed  in  the  ledger  to  indicate  the 
cash  payment  but  it  might  prove  advantageous  if  the  discounts  were  indicated  by  the  words 
Disct.  2  per  cent,  written  in  the  wide  column  of  th3  ledger. 

8.  To  close  and  post  the  Journal,  (a)  Rule  the  journal  similarly  to  the  forms  shown  in  105 
(q),  bringing  the  footings  of  the  outer  columns  into  the  General  Ledger  columns  to  be  posted,  the 
left  hand  outer  column  footing  as  Accounts  Payable  and  the  right  hand  outer  column  footing  as 
Accounts  Receivable. 

(b)  Then  post  these  footings  and  all  items  found  in  the  General  Ledger  column  (except 
the  opening  entry  which  you  either  checked  or  posted  at  the  time  of  making  it)  to  your  general 
ledger;  and  post  the  separate  debits  and  credits  found  in  the  columns  marked  Customers'  Ledger 
and  Creditors'  Ledger  to  the  debit  or  credit  of  the  individual  accounts  in  the  customers'  and  creditors' 
ledgers  respectively. 

9.  To  Post  the  Sales  Book,  (a)  Post  the  amount  of  each  individual  sale  to  the  debit  of  that 
individual's  account  in  the  customers'  ledger. 

(b)  Post  the  amount  of  any  sale  of  consignment  goods  (found  in  the  central  or  Sundries 
column  of  your  sales  book)  to  the  credit  of  the  consignment  to  which  it  belongs  just  as  you  would 
if  this  were  a  journal  credit  column.  This  is  in  addition  to  posting  the  amount  also  to  the  debit 
of  the  purchaser. 

(c)  Post  the  total  footing  of  the  Merchandise,  or  right  hand  column,  to  the  credit  of  the 
Merchandise  account  in  the  general  ledger. 

(d)  Add  together  the  footings  of  the  Sundries  and  Merchandise  columns  and  post  the  total 
to  the  debit  of  Accounts  Receivable  in  the  general  ledger.    The  ruling  of  your  sales  book  for  this 


/ 


c:^^ti^.y^ 


2^/^^ 


/jTfj 


:23frfy 


♦Checked  ( V )  because  not  to  be  posted. 


174 


CAMPBELL'S  ACTUAL  ACCOUNTING 


closing  will  be  in  the  preceding  form,  the  figures  representing  the  footings  of  the  Sundries  and 
Merchandise  columns.    The  items  or  extension  column  is  not  footed. 

lo.  Post  and  close  the  Invoice  Book.  The  posting  and  closing  of  this  book  is  very  similar 
to  the  posting  and  closing  of  the  Sales  Book. 

(a)  Post  the  total  amount  of  each  invoice  to  the  credit  of  the  seller's  account  in  the  credi- 
tors ledger,  post-checking  the  invoice  as  in  the  form  in  128. 

(b)  Add  the  Merchandise  column  and  post  to  the  debit  of  the  Merchandise  account  in  your 
general  ledger. 

(c)  If  a  Sundries  column  be  used  in  this  invoice  book  as  in  the  sales  book,  its  items  would 
post  to  the  debit  of  the  respective  accounts  as  from  a  journal  debit  column  and  the  total  would 
add  to  the  merchandise  total  to  make  the  credit  to  be  posted  to  Accounts  Payable.  In  this  closing 
there  is  no  Sundries  column  used  in  the  Invoice  book  and  the  total  footing  of  Merchandise  column 
posts,  as  in  (b),  to  the  debit  of  Merchandise  and  to  the  credit  of  Accounts  payable.  See  form 
below: 


X^^aitfi^^l^'^  ^!^^^«-*:-«?-*''-^*^«'^  .^^-5^-«z-<^<^' 


^7f7' 


4KZ. 


11.  This  completes  your  posting.  Prove  Bills  Receivable  and  Bills  Payable  as  in  former 
work.    Then  take  a  trial  balance  of  each  ledger  separately,  observing, — 

(a)  That  the  general  ledger  including  Accounts  Receivable  and  Accounts  Payable  ac- 
counts, but  excluding  the  separate  individual  accounts,  should  balance  perfectly,  and 

(b)  That  the  customers'  ledger  (personal  accounts  in  your  favor)  is  to  be  balanced  by  the 
difference  between  the  sides  of  the  Accounts  Receivable  account  in  the  general  ledger,  and  the 
creditors'  ledger  by  the  difference  between  the  sides  of  the  Accounts  Payable  account  in  the  gen- 
eral ledger. 

12.  If  either  or  all  of  these  balances  fail  to  balance  as  they  should,  and  you  cannot  dis- 
cover your  error  by  looking  over  your  work,  the  best  method,  both  for  finding  your  error  quick- 
ly and  for  enabling  you  to  understand  this  set  of  books  will  be  that  set  forth  below. 

Copy  into  the  first  pair  of  columns  on  a  sheet  of  trial  balance  paper,  the  trial  balance  taken 
after  making  your  opening  entry  in  136,  making  neat  small  figures  as  there  will  necessarily  be 
two  and  sometimes  three  numbers  on  one  line,  then  proceed  as  follows : 

(a)  Take  up  your  four-column  journal,  and  beginning  with  the  first  entry  following  the 
opening  entry,  take  the  first  debit  item  found  in  the  General  Ledger  column,  which  is  probably 
Expense  $50,  and  looking  down  through  all  the  items  of  the  debit  General  Ledger  column  of  the 
journal  to  see  if  there  be  any  other  items  charged  to  Expense,  add  together  mentally  all  such 
items,  writing  the  result  in  red  ink  in  the  debit  column  on  the  same  line  with  Expense  or  on  the 
first  vacant  line  of  the  trial  balance  copied  from  the  General  Ledger,  if  there  be  no  item  of  Ex- 
pense in  the  copied  balance.  Passing  down  the  debit  column,  your  next  item  is  probably  a  debit 
to  a  shipment,  but  whatever  it  may  be,  take  the  next  item,  and  in  the  same  way  add  to  it  all  the 
other  items  debited  or  charged  to  the  same  account  in  the  General  Ledger  column  of  the  jour- 
nal and  carry  it  into  the  copied  balance  in  red  ink  as  before.  As  there  is  no  account  entitled 
Shipment  in  the  copied  balance  with  which  you  started,  write  the  present  total  on  a  new  line  (the 
first  vacant  line),  using  red  ink  as  before.  Continuing  down  the  column  you  will  probably  find 
one  or  more  items  of  Bills  Receivable.  Add  these  together  and  write  them  in  red  ink  on  the  same 
line  with  the  Bills  Receivable  item  in  the  copied  balance.  You  will  also  be  likely  to  find  in  the 
debit  journal  column  several  items  of  Mdse.  Discount.  Add  these  together  and  write  the  result  in 
red  ink  in  the  debit  column  of  the  trial  balance,  using  a  new  line  as  there  is  no  item  of  Mdse. 
Disct.  in  the  balance  which  you  copied.     Continue  in  this  manner  until  you  have  aggregated  in 


CAMPBELL'S  ACTUAL  ACCOUNTING  175 

the  respective  accounts  and  carried  to  the  debit  column  of  the  trial  balance,  in  red  ink,  all  the 
items  found  in  the  debit  General  Ledger  column  including  the  footing  of  Accounts  Payable  car- 
ried into  the  column  at  the  closing. 

(b)  Proceed  in  the  same  manner  with  the  credit  General  Ledger  column  of  the  journal, 
adding  together  all  items  that  go  to  the  same  account  and  carrying  them  into  the  credit  column 
of  the  trial  balance  previously  copied,  making  sure  that  no  title  is  repeated  in  the  balance  which 
you  are  constructing.  Continue  this  to  and  including  the  footing  of  Accounts  Receivable  car- 
ried into  the  General  Ledger  column  at  closing,  and  when  all  items  of  these  two  columns  have 
been  thus  carried  into  the  trial  balance  in  red  ink,  the  red  ink  items  added  by  themselves  should 
balance.  If  they  do  not,  it  will  help  you  to  prove  one  side  at  a  time  to  know  that  the  sum  of  the 
red  figures  on  either  side  of  this  balance  added  to  the  opening  entry  figures  for  the  same  side 
should  give  the  journal  sundries  footing  for  that  side.  When  they  do,  add  together  such  items 
of  the  copied  trial  balance  and  of  the  red  ink  balance  as  appear  together  in  the  same  line  and  on 
the  same  side,  and  extend  all  items  into  the  second  pair  of  columns  on  the  trial  balance  paper  as 
shown  in  the  form  illustrated  in  72  (e).  The  addition  of  the  two  balances  written  into  the  first  pair 
of  columns  and  extended  into  the  second  pair  should  also  balance  and  the  footing  of  the  new 
balance  should  be  equal  to  the  sum  of  the  footings  of  the  copied  balance  and  the  red  ink  balance 
which  was  made  up  from  the  journal.  This  last  suggestion  will  aid  you  in  deciding  on  which  side 
the  mistake  has  been  made  in  case  the  balance  does  not  immediately  prove. 

(c)  Take  the  cash  book  and  proceeding  down  the  General  Ledger  column  on  the  debit  side 
of  the  book,  aggregate  the  items  belonging  to  the  respective  accounts  (if  there  be  more  than  one 
item  for  the  same  account)  and  write  the  results  in  red  ink  on  the  credit  side  of  the  second  pair 
of  trial  balance  columns  which  you  have  just  proved,  each  result  on  the  same  line  with  the  name 
of  its  account  or  on  a  new  line  if  it  has  no  account.  In  aggregating  these  items  omit  any 
which  show  that  they  have  been  posted  from  the  journal  to  the  cash  book  as  these  are  already 
aggregated  in  the  balance  taken  from  the  journal.  Include  in  this  aggregation  all  other  items 
from  the  general  column  including  the  Accounts  Receivable  and  Mdse.  Disct.  amounts  below 
the  first  addition  lines.  Add  together  the  red  ink  items  just  entered  on  the  credit  side  of  the  trial 
balance  columns  and  write  the  result  in  black  ink  on  the  debit  side  in  the  line  marked,  Cash. 

(d)  Take  up  the  items  in  the  General  Ledger  column  on  the  credit  side  of  the  cash  book  and 
deal  with  them  in  the  same  way  including  also  the  Accounts  Payable  total  and  the  Mdse.  Disct. 
found  below  the  first  addition  lines,  and  enter  these  in  red  ink  on  the  debit  side  of  the  second  pair 
of  trial  balance  columns,  the  same  pair  of  columns  used  in  (c)  above  but  on  the  opposite  side. 
Add  together  these  red  ink  debits  and  write  the  sum  in  black  ink  on  the  credit  side  of  the 
balance  in  the  line  marked.  Cash.  To  prove  that  you  have  copied, your  cash  book  correctly  into 
this  constructed  trial  balance,  add  together  the  items  appearing  as  the  debit  of  cash  (both  red  and 
black)  and  from  the  sum  subtract  the  items  appearing  as  the  credit  of  cash,  and  the  difference 
should  give  your  present  cash  balance  as  it  appears  brought  down  in  your  cash  book.  When 
the  amounts  taken  from  the  cash  book  to  the  trial  balance  in  red  ink  prove  this,  add  each  red  ink 
amount  in  the  second  pair  of  columns  to  the  amount  in  black  on  the  same  line  and  extend  the 
result  horizontally  into  the  third  pair  of  columns,  adding  and  balancing  to  prove  that  your  work 
is  correct. 

(e)  From  the  Sales  Book  you  will  obtain  two  credits  which  you  will  write  in  red  ink  into 
the  trial  balance  now  appearing  in  the  third  pair  of  columns,  namely,  Merchandise,  which  you 
will  write  into  the  Merchandise  line  in  the  credit  column  and  one  or  more  items  of  a  consign- 
ment sale  which  you  will  enter  on  the  credit  of  the  line  marked  Consignment  No.  2.  Add  together 
these  two  credits,  as  they  appear  in  your  trial  balance  in  red  ink,  and  write  the  sum  in  red  ink  as  a 
debit  on  the  Accounts  Receivable  line  in  the  same  pair  of  columns. 

(f)  Turn  to  the  invoice  book  and  take  the  one  footing  that  appears  in  that  book  to  the 
debit  of  Merchandise  in  red  ink  and  to  the  credit  of  Accounts  Payable  also  in  red  ink.    As  these 


176  CAMPBELL'S  ACTUAL  ACCOUNTING 

last  items  exactly  balance  and  have  been  taken  to  a  trial  balance  previously  proved,  the  result 
must  balance.  Add  together  as  before  the  black  and  red  amounts  and  extend  all  into  a  fourth 
pair  of  columns,  adding  to  prove  this  work.  When  this  fourth  pair  of  columns  balances  you  will 
have  a  key  to  the  correct  condition  of  your  general  ledger  at  the  present  time.  Compare  the 
previous  instructions  step  by  step  with  the  work  as  illustrated  in  72  (e). 

13.  To  Prove  the  Customers'  Ledger.  Copy  the  balance  of  the  Customers'  Ledger  as  taken 
after  posting  your  opening  entry  and,  turning  to  your  sales  book,  write  into  it  all  sales  to 
customers,  adding  those  belonging  to  the  same  accounts,  and  writing  the  amounts  in  red  ink  on 
the  debit  side  of  the  copied  balance.  Prove  the  accuracy  of  this  work  by  adding  the  red  ink  items. 
The  result  should  equal  the  amounts  posted  to  the  debit  side  of  the  general  ledger  from  the  sales 
book  footings.  Write  the  sum  in  pencil  at  the  foot  of  the  credit  column.  Then  turn  to  the  cash 
book  and  from  the  customers'  ledger  columns  on  the  debit  side  of  the  book,  take  the  credits  be- 
longing to  these  personal  accounts,  both  the  cash  receipts  and  the  discount,  adding  together  all 
items  of  cash  and  discount  belonging  to  the  same  person  and  writing  the  amounts  into  your 
copied  balance  in  red  ink  in  the  credit  column.  Add  these  red  ink  credits.  They  should  equal 
the  total  item  of  Accounts  Receivable  carried  to  the  general  ledger  from  the  debit  of  the  cash 
book.  Write  it  in  pencil  at  the  foot  of  the  debit  column.  See  entry  below  first  closing  lines.  Take 
from  the  Customers'  Ledger  column  of  the  journal  the  journal  credits  in  the  same  manner  as 
above,  then  write  it  also  in  pencil  at  the  foot  of  the  debit  column.  The  red  ink  results  added  to 
the  former  balance  and  extended  as  in  the  work  done  in  finding  the  general  trial  balance  above, 
will  be  a  key  to  the  customers'  ledger  and  the  penciled  total  taken  with  the  former  balance  of  per- 
sonal accounts  will  give  the  balance  of  Accounts  Receivable  in  the  general  ledger. 

14.  To  Prove  the  Creditors'  Ledger.  Copy  the  balance  taken  after  posting  your  opening 
entry,  and  write  into  it  in  red  ink  on  the  credit  side  the  amounts  of  invoices  bought  as  shown  by 
your  invoice  book,  following  the  plan  given  for  abstracting  the  sales  book  items  in  13  above. 
Prove  by  adding  the  red  ink  items  just  copied.  The  amount  should  equal  the  credit,  posted  to 
Accounts  Payable  from  the  footing  of  the  invoice  book.  Write  it  in  pencil  at  the  foot  of  the 
debit  column.  Then  turn  to  the  cash  book  and  from  the  columns  marked  Creditors'  Ledger 
take  both  the  cash  payments  and  the  discounts  charged  to  creditors  and  write  them  into  the 
copied  balance  on  the  debit  side  in  red  ink.  Prove  by  adding  these  red  ink  items.  They  should 
equal  the  total  amount  posted  to  the  debit  of  Accounts  Payable  from  the  General  Ledger  column 
on  the  credit  side  of  the  cash  book.  Write  it  in  pencil  at  the  foot  of  the  credit  column.  See  entry 
below  first  addition  line.  Next  take  the  debit  items  from  Accounts  Payable  column  of  the  journal 
in  the  same  manner.  This  completes  the  construction  of  a  key  to  the  balance  of  your  ledgers  by 
which  you  can  discover  your  errors  and  compel  the  balance  of  your  ledger  as  in  72  (e),  and  when 
you  have  learned  to  work  it,  it  is  quicker  and  easier  than  the  copying  method  set  forth  in  72  (a), 
(b)  and  (c). 

15.  Your  ledgers  being  now  in  balance,  place  orders  with  the  Riverdale  Fruit  Co.,  and  the 
Spur  Coffee  Co.  for  merchandise  and  in  your  correspondence  remember  that  this  will  be  your  first 
order  from  the  latter  company,  but  that  Mr.  Wemple  is  well  acquainted  with  the  firm.  Your  letter 
should  read  somewhat  as  follows :  "Gentlemen : — Your  former  customer,  E.  H.  Wemple  and 
(your  own  name),  have  formed  a  co-partnership  and  are  pleased  to  state  that  the  new  firm  will 
hereafter  be  known  as  (your  name)  &  Wemple.  We  are  enclosing  herewith  an  order  for  merchan- 
dise on  60  days,  subject  to  your  usual  discounts  and  trust  that  you  will  accord  us  the  very 
satisfactory  treatment  that  Mr.  Wemple  has  alv/ays  had  at  your  hands,  etc."  In  writing  to  the 
Riverdale  Fruit  Co.,  remember  that  you  are  the  member  of  the  firm  who  is  known  to  them  in  a 
business  way.     This  will  reverse  the  style  of  the  letter. 

Secure  your  customers'  orders  for  next  day's  trading,  including  one  of  E.  H.  Wemple's 
former  customers   among  this   day's  buyers,   (his    purchase    to    be    delivered   to    your    teacher) 


CAMPBELL'S  ACTUAL  ACCOUNTING 


177 


then  submit  your  books  for  teacher's  inspection   arranged   in   the   usual   form,  with   the  usual 
duplicate  copy  of  the  daily  report  neatly  copied  into  the  form  below. 


REPORT 

Report  of  School  Duties:    I  take  bookkeeping Hours  a  day. 

Hours  worked  since  last  report ,  Absent Total No.  of  Letters  written 

No.  of  Invoices  bo't  of  wholesale  houses Of  students ,   Total 

No.  of  Payments  made  in  cash ;   in  notes ;    in    acceptances ;    Total...;.... 

No.  of  Payments  rec'd  in  cash ;   in  notes ;    in    acceptances ;     Total 

No.  of  Sales  made:     To  T.   &  T.  Co ;    to  students ;   Total  No ,  $ 

No.  of  Entries   made Average   per   hour Time  on  trial  balance hours. 


NOTES 


Bills  Receivable,  Ledger  Balance 

Total  uncollected  in  bill  book 

Total  value  of  notes  in  the  safe . 

Bills  Payable,  Ledger  Balance 

Total  unpaid  in  bill  book 


CASH 


Ledger  Balance. , . 
In  bank,  Stb.  No.. 
In  safe,  Currency 
In  safe,  Checks,  .. 


Total  Cash  on  hand. 


Respectfully  submitted, 


TEACHER'S 


.191.... 


STAMP 


137.  I.  Write  a  letter  to  the  Van  Camp  Hardware  Co.  at  College  Center,  Y.  S.,  stating  that 
you  have  been  for  some  years  engaged  in  the  grocery  business  at  College  City,  during  which  time 
you  have  had  many  inquiries  for  the  common  articles  of  domestic  and  farm  hardware,  and  that 
while  you  cannot  consider  putting  capital  into  a  side  line  of  goods  at  present,  you  would  be  glad  to 
handle  a  small  stock  of  their  goods  as  a  branch  of  their  business,  with  only  such  expense  to 
them  for  house  rent  as  would  represent  the  proportion  of  your  floor  or  shelf  room  occupied,  and 
a  similar  arrangement  as  to  clerk  hire  as  the  business  develops.  State  that  you  would  be  willing 
for  the  first  year  to  undertake  to  manage  and  develop  the  business  for  the  salary  of  one  clerk,  or 
$100.  Name  a  number  of  the  business  houses  in  College  Center  with  whom  you  have  been  doing 
business  as  references. 

2.  Fill  orders  approved  by  your  teacher  at  last  closing,  accompanying  one  bill  with  a  draft 
at  30  days  for  acceptance  and  one  with  a  note  payable  "on  demand."  In  writing  out  the  draft 
and  note  remember  to  deduct  the  i  per  cent,  from  the  face  of  the  bills.  Make  entry  in  sales  book 
as  in  previous  work. 

3.  Enter  all  invoices  received  since  last  closing,  by  pasting  them  into  your  invoice  book 
(after  checking  carefully)  and  extend  the  amounts  into  the  Merchandise  column  directly  opposite 
the  name  of  the  seller  so  that  in  posting  you  will  not  need  to  lift  the  loose  part  of  the  bill  to  see 
to  what  bill  the  figures  belong. 

Note.  Observe  that  while  working  this  outline  you  can  conveniently  enter  invoices  at  any  time,  just  when 
they  are  received,  or  while  closing  your  books  after  the  invoice  book  has  been  ruled,  provided  only  that  you 
check  carefully  the  items,  extensions  and  other  computations. 

4.  Pay  for  invoices  received  as  follows : 

(a)  Sign  notes  or  accept  drafts  when  they  accompany  the  invoices. 

(b)  Pay  for  one  or  two  bills  by  drafts  at  30  days  on  some  of  your  customers  who  are  in- 
debted to  you ;  and  for  one  or  two  bills  by  sight  drafts  on  persons  who  owe  you.    Observe  that  in 


178  CAMPBELL'S  ACTUAL  ACCOUNTING 

the  case  of  a  thirty-day  draft  your  merchandise  discount  is  i  per  cent,  and  in  the  case  of  a  sight 
draft,  2  per  cent., — the  latter  being  equivalent  to  cash  to  your  creditor;  and  that  the  entry  on 
your  own  books  is  the  same  in  either  case.  Make  entry  for  all  of  the  above  payments,  both  (a) 
and  (b),  in  your  journal.  For  one  or  two  remaining  invoices  pay  cash  less  2  per  cent,  (if  you  are 
entitled  to  a  discount)  and  make  entry  on  the  credit  side  of  your  cash  book  in  the  Cash  Payment 
and  Discount  columns  as  in  former  work. 
5.     Make  entry  for  payments  received. 

(a)  In  entering  payments  on  account  of  bills  sold,  make  entry  for  notes  or  acceptances 
received,  in  your  journal  as  instructed  in  previous  work,  and  for  cash  received,  on  the  debit  side 
of  your  cash  book  in  the  Cash  Receipts  and  Discount  columns. 

(b)  In  entering  payments  received  for  notes  or  acceptances,  enter  in  cash  book.  General 
Ledger  column,  debit  side,  using  one  line  for  the  face  of  the  note  or  acceptance  paid  and  one  line 
for  the  amount  of  interest. 

6  Pay  all  acceptances  or  notes  which  you  owe  that  have  matured ;  making  entry  as  in  4  (b) 
except  that  it  will  be  on  the  credit  side  of  your  cash  book. 

7.  Make  a  shipment  of  merchandise  to  some  student  to  be  sold  on  commission,  and  secure 
a  consignment  of  goods  from  this  student  or  some  other,  to  be  sold  by  you  on  commission.  Make 
entry  in  both  cases  as  instructed  in  136,  2  and  3. 

8.  Remit  to  your  wholesale  houses  for  invoices  last  received,  taking  advantage  of  the  cash 
discount ;  and  place  new  orders  for  merchandise  with  F.  W.  Stone  &  Company,  Spurr  Coffee 
Company,  and  the  Harmer  Produce  Company.  Be  careful  not  to  make  your  aggregate  orders 
larger  than  you  will  be  able  to  pay  for.  Remember  in  writing  your  letters  that  Mr,  Wemple  has 
been  dealing  formerly  with  F.  W.  Stone  &  Co.,  and  write  a  letter  similar  to  the  one  written 
to  the  Spurr  Coffee  Co. 

9.  Take  from  your  business  blanks  a  form  of  warranty  deed  and  fill  it  out  neatly  with  pen 
or  typewriting  similar  to  the  form  presented  in  138.  Fill  in  everything  that  appears  typewritten  in 
138  (including  the  notary's  certificate)  except  the  signatures.  In  doing  this,  you  are  performing 
the  work  of  a  real  estate  clerk,  and  preparing  papers  for  signing.  Observe  that  you  are  being 
required  to  make  out  these  deeds  not  because  it  is  your  business  as  purchaser  to  prepare  the  deeds, 
for  that  usually  is  considered  the  business  of  the  seller  and  is  done  at  his  expense;  but  you  are 
required  to  do  this  work  as  a  practice,  that  you  may  have,  in  turn,  the  preparation  of  each  and 
every  form  of  deed  required  in  the  course  of  study.  Observe  that  the  Townsite  and  Trading  Co. 
is  the  party  of  the  first  part.  Fill  out  the  form  carefully,  asking  your  teacher  or  the  manager  of 
the  Real  Estate  Office  to  assign  you  a  suitable  residence  lot.  Observe  that  both  the  number  of 
the  lot  and  number  of  the  block  enters  into  the  description  in  the  form  of  deed  presented  in  138 
for  your  guidance.  This  residence  lot  will  cost  you  $500.  If  you  have  any  money  outside  of  the 
business,  as  for  example  the  check  withdrawn  as  instructed  in  123,  6,  use  that  to  pay  on  your  lot, 
and  draw  the  firm's  check  in  your  favor  for  whatever  balance  you  need,  or  for  the  whole  $500  if 
you  have  no  money  of  your  own.  Endorse  this  check  payable  to  the  Townsite  and  Trading  Co., 
and  deliver  it  to  your  teacher  or  the  manager  of  the  Real  Estate  Office  who  will  at  this  time 
have  the  deed  signed  and  the  notary's  acknowledgment  completed.  Make  entry  charging  yourself 
personally  and  crediting  cash  in  the  cash  book,  credit  side,  general  ledger  column.  Explain  With- 
drazvn  for  private  investment.  It  is  not  necessary  to  report  on  the  books  what  you  did  with  this 
money,  as  it  is  not  the  business  of  the  firm,  but  a  private  matter. 

10.  (a)  Take  from  your  business  blanks  a  second  warranty  deed.  This  time  your  firm  has 
decided  to  purchase  a  business  lot  with  a  view  to  erecting  its  own  building.  Negotiate  with  your 
teacher  or  the  manager  of  the  Townsite  Co.  for  a  suitable  business  lot  which  will  cost  you 
$1,000.  In  making  out  this  deed,  observe  that  the  Townsite  and  Trading  Co,  is  again  the  party  of 
the  first  part,  but  that  your  firm  is  the  party  of  the  second  part.     Observe  further  that  a  part- 


CAMPBELL'S  ACTUAL  ACCOUNTING  179 

nership  can  not  buy  and  sell  real  estate  in  its  firm  name,  but  that  the  deed  must  be  made  out 
either  to  one  of  the  partners  in  trust  for  the  firm,  or  to  the  individual  partners  jointly,  or,  in  case 
their  interests  are  not  equal,  separate  deeds  may  be  executed,  one  to  each  partner,  for  an  un- 
divided interest  in  the  real  estate  equal  to  his  interest  in  the  firm.  Since  you  and  your  partner 
are  equal  partners  by  your  contract,  this  property  may  be  deeded  to  you  jointly  which  will  give 
each  of  you  an  undivided  one-half  interest.  Note  this  feature  in  the  form  of  deed  given  you  in 
139  and  follow  it  in  the  preparation  of  the  deed  between  the  Townsite  and  Trading  Co.  and 
your  firm  at  the  present  time.  When  the  deed  is  completed,  you  will  write  out  the  firm's  check 
for  $200  as  a  part  payment  and  will  draw  up  and  sign  a  joint  and  several  note  in  favor  of  the 
grantors,  due  six  months  after  date,  for  the  remaining  $800.  This  note  should  be  signed  in- 
dividually by  each  member  of  the  firm.     Your  teacher  will  sign   for  E.  H.  Wemple. 

(b)  In  buying  real  estate  when  it  is  not  fully  paid  in  cash,  it  is  customary  to  give  a  mort- 
gage to  secure  the  amount  of  the  note  or  deferred  payment.  Take  from  your  business  blanks 
a  real  estate  mortgage  form  and  fill  it  out  similar  to  the  form  presented  in  140.  Observe  that 
in  this  form  you  and  your  partner  become  the  parties  of  the  first  part  and  the  Townsite  and 
Trading  Co.  the  second  party,  and  that  the  mortgage  is  not  to  be  signed  by  the  Townsite  Co.  as 
was  the  deed,  but  is  to  be  signed  by  the  individual  members  of  your  firm.  Note  that  the  mortgage 
requires  the  same  acknowledgment  by  the  notary  as  a  deed.  When  your  deed  and  mortgage 
are  properly  made  out,  signed,  witnessed  by  two  other  persons,  acknowledged  by  the  notary 
public,  and  approved  by  your  teacher,  you  will  turn  over  the  check  for  $200,  the  note  for  $800 
and  the  mortgage  that  secures  the  note,  to  the  Townsite  and  Trading  Co.,  taking  possession  of 
the  deed,  now  the  property  of  the  firm,  folding  it  as  you  did  your  partnership  contract  in  108,  2, 
and  filing  it  in  Compartment  i  of  your  filing  case.  Make  entry  debiting  Real  Estate,  and  credit^ 
ing  cash  for  $200  and  Mortgages  Payable  for  $800.    Explain,  Invested  in  real  estate,  buying  lot  No, 

in  block  No. .Observe  that  this  new  account,    "Mortgages    Payable"    is    the    same    in 

effect  as  Bills  Payable,  but  that  the  debt  being  secured  by  mortgage  is  of  a  more  permanent 
nature  than  notes  given  in  business  and  paid  in  30,  60  or  90  days  and  may  properly  be  given 
a  separate  account. 

11.  Detach  from  Prepared  Blanks,  forms  80  and  81  (a)  and  (b).  Observe  that  they  con- 
sist of  a  letter  from  Van  Camp  Hardware  Company  accepting  the  proposition  you  made  in  137, 
I,  and  handing  you  duplicate  copies  of  the  Branch  House  contract  for  your  signature.  Supply 
your  name  and  the  present  date  in  both  copies  of  the  contract  and  sign  both,  having  some  student 
witness  your  signature  on  both  contracts.  File  one  of  these  signed  copies  in  your  file  for  Receipts 
and  Papers  and  reply  to  the  letter  of  the  Van  Camp  Company,  enclosing  the  other  signed  copy  of 
the  contract  and  suggesting  any  articles  in  the  hardware  line  which  you  think  you  might  handle 
to  advantage  and  which  are  not  included  in  the  list  mentioned  in  their  letter.  Hand  this  letter 
with  the  enclosures  to  your  teacher  when  you  submit  youi  books  for  marking, 

12.  (a)     Prove  and  rule  cash  as  instructed  in  136,  7. 

(b)  Make  bank  deposit. 

(c)  Post  carefully  from  all  your  books  to  your  ledgers,  following  instructions  given  for  each 
in  136,  7  (e),  8,  9  and  10. 

(d)  Prove  Bills  Receivable  and  Payable. 

(e)  Take  a  trial  balance  proving  all  three  of  your  ledgers.   See  instructions  under  136,  11,  12. 

13.  Secure  customers'  orders  for  next  day's  trading,  disposing  of  consignment  received  in 
7  above  to  some  one  of  your  customers,  and  submit  these  orders  with  your  books  properly 
arranged  for  your  teacher's  inspection,  making  the  usual  duplicate  copy  of  the  daily  report  and 
neatly  copying  it  into  the  form  on  page  183. 


i8o 


CAMPBELL'S  ACTUAL  ACCOUNTING 


138  GENERAL  WARKANTY  DEED 


Cbi$  lndCNlNPC»      ^^^^  <">  ^^^  15th  day  of  April  a.  D.  one  Tbousand  Nine 

Hundred  and  by  and  between  The    TOWXlslte    and    Trad- 

ing Company   of  College    01  ty    lu  the  county  of  Urown  state  of  y  s.,  a 

corporation  organized  and  doing  business  under  the  laws  of  the  State  of  Y.  S.,  part  y      of  the  First  Part,  and 

C.    W.    Burke  of  College  City  in  the 

County  of  Urovn  and  State  of  Y.  S..  party    of  the  Second  Part: 

mitlt^$$Clb     that  the  said  part  y         of  the  First  Part.  In  consideration  of  the  mm  of 
Five    Hundred    00/100     (600)  Dollars,  to      it      paid  by  the  said  party         of  the  Second 

Part,  the  receipt  of  which  is  hereby  acltnowledged,  does    ^V  these  presents  Grant.  Bargain  and  Sell.  Convey 
and  Confirm,  unto  the  said  part  y  of  the  Second   Part,  hi  S     heirs  and  assigns,  the  following  described 

Lots,  Tracts  or  Parcels  of  land,  lying,  being  or  situate  in  the  County  of  UrOwn  and  State  of  Y.  S., 

to-wit:    Lot  numbered  (17)  seventeen  in  block  numbered  (123) 
one  hundred  twenty  three  in  Rankin's  Addition  to  the  city  of 
College  City,  the  plat  of  which  is  on  file  in  the  office  of 
the  Register  of  Deeds  of  Urovrn  County»  Y.  S. 

Co  fidVC  Jind  to  fiOld  the  premises  aforesaid  with  ail  and  singular,  the  rights,  prlvUegea,  appur- 
tenances and  Immunities  thereto  belonging,  or  In  any  wise  appertaining  unto  the  said  part  y  of  the  Second 
Part,  and  unto  hls  heirs,  and  assigns,  forever;  the  said  TOwnslte  and  Trading 
Company  hereby  covenanting  that  It  Is  lawfully  seized  of  an  indefeasible  Estate  in  feo  in  the 
premises  herein  conveyed,  that  It  ha  s  good  right  to  convey  the  same;  t^at  the  said  premises  are 
free  and  clear  of  any  Incumbrances  done  or  suffered  by  It  Self  or  those  under  whom  it 
claims  and  that  It  will  WARRANT  AND  DEFEND  the  title  to  the  said  t)remises  unto  the  said 
part  y  of  the  Second  Part,  and  unto  hls  heirs  and  assigns  FOREVER,  against  the  lawful  claims  and 
demands  of  all  persons,  whomsoever, 

IN  WITNESS  WHEREOF,  the  said  part  y         of  the  First  Part  ha  s  hereunto  set      Its     seal 

and  caused  these  presents  to  be  signed  by  Its  president  and  secretary  the  day  and  year  first  above  written. 
Sealed  and  Deiiuertd  fn  PreseniM  0/         \       THiC  T0WN8ITE   AND   TAAOINO    OOXPANT. 


^^.t;^^Jl>^ 


Seanr/iiir 


STATE  OF  Y. 

County  of     Uxown     |      On  this  fifteenth  day  oi  April        191 

before  me  personally  appeared   Byron  F.     Burg ,    the   president,    and  0.    D 
Burns,    the   secretary,    of  the  Townsite  and  Trading  Company,    a 
corporation, 

to  me  known  to  be  the  persons  described  in  the  foregoing  instrument  and  duly  authorized  under  by  laws  of  the 
said  company  to  execute  the  same  for  said  company,  and  who  executed  the  foregoing  instrument,  and  acknowl- 
edged that  they  executed  the  same  as  the  free  act  ana    deed  of  said  company. 

IN  TESTIMONY  WHEREOF,  I  have  hereunto  set  my  hand  and  affixed  my  official  seal 
at  my  office  In     College    City         the  day  and  year  first  above  written. 


i  J  Uy^A^^-^  J\%-^ 


i^ 


My   term  as  Notary   Public  expires 


August   31 


Notary  Public. 
191 


CAMPBELL'S  ACTUAL  ACCOUNTING        .  i8i 


139  GENERAL  WARRANTY  DEED 


CbiS  Indenture,   "^^^^  °°  ^^^      iStll  day  or  April  a.  D.  one  Thouand  Nine 

Hundred  and  by  and  between  The    TOWXlfll'te    and       Trad- 

ing     Company   of  College   City        in  the  county  of  Uro-wn  state  of  y.s. 

a  corporation  organized  and  doing  business  under  the  laws  of  the  State  of  Y.  S.,  part  y        of  the  First  Part, 

and  C-  W  Burke  and  C.  A.  Foley,  copartners  doing  business 
under  the  firm  name  of  C  W.  Burke  &  Company 

in  the  County  of        Urown     a°<i  State  of  Y.  S.,  part  ieg  of  the  Second  Part: 

WITNESSETH  that  the  said  part  y  of  the  First  Part,  In  consideration  of  the  sum  of 

One    Thousand    00/000     (1000)  Dollars,  to       it        paid  by  the  said  parties  of 

the  Second  Part,  the  receipt  of  which  is  hereby  aclcnowledged,  do  by  these  presents  Grant,  Bargain  and 

Sell,  Convey  and  Confirm,  unto  the  said  part  ies  ot  the  Second  Part  their  heirs  and  assigns,  the 
following  described  Lots,  Tracts  or  Parcels  of  land,  lying,  being  or  situate  In  the  County  of  Urown  and 
State  of  Y  S.,  to-wit.  i 

Lot  numbered  (12)  tvelve  in  block  numbered  (26)  in  the  origi- 
nal plat  of  the  city  of  College  City,  which  plat  is  on  file 
in  the  office  of  the  Register  of  Deeds  of  Urown  County,  Y.  S 

TO  HAVE  AND  TO  HOLD  the  premises  aforesaid  with  all  and  singular,  the  rights,  privileges,  appurt- 
enances and  Immunities  thereto  belonging,  or  In  any  wise  appertaining  unto  the  said  part  i  e  S  of  the  Second 
Part,  ana  unto  their  heirs,  and  assigns,  forever;  the  said  TownsitO  and  Trading  Com- 
p^QY  hereby  covenanting  that  it  is  lawfully  seized  of  an  indefeasible  Estate  in  fee  in 
the  premises  herein  conveyed,  that  it  ba  a  good  right  to  convey  the  same;  that  the  said  premises 
are  free  and  clear  of  any  incumbrances  done  or  suffered  ny  itself  or  those  under  whom  it 
claim  a  and  that  it  wl"  WARRANT  AND  DEFEND  the  title  to  the  said  premises  unto  the  said 
part  ies  of  the  Second  Part,  and  unto  their  heirs  and  assigns  FOREVER,  against  the  lawful  claims 
and  demands  of  all  persons  whomsoever, 


IN  WITNESS  WHEREOF,  the  said  party  oi  the  First  Part  ha  g  hereunto  set         its        seal 

and  caused  these  presents  to  be  signed  by  Its  president  and  secretary  the  day  and  year  first  above  written. 

Sealed  and  Delivered  in  Presenoti  of  j        THE   T0WN8ITE   AND   TRADING    OOKPANY, 


PfesioeMt 
SfatiTMir 


STATE  OF  Y    S      | 


County  of      UrOwn      (        On  this  fifteenth  day  of  April  191 

before  me  personally  appeared     Byron    F       BuTg ,     the    president,     and    C.     D 

Burns,  the  Secretary,  of  the  Tovnsite  and  Trading  Company,  a 
corporation, 

to  me  known  to  be  the  persons  described  In  the  foregoing  instrument  and  duly   authorized   under  bylaws  of  the 
said  company  to  execute  the  same  for  said  company,  and  who  executed  the  foregoing  instrument,  and  aclcnowl 
edged  that  they  executed  the  same  as  the  free  act  and   deed  of  said  company 

/^^^J*'0'K  '^   TESTIMONY  WHEREOF.  I  have  hereunto  set  my  hand  and  affixed  my  official  seal 

liA'^^^.^X  at  my  office  in     College    City         the  day  and  year  first  above  written. 


|3  i^>^A^^-^  J]^  , 


k=^ 


Notary  Public, 
My   term   as   Notary   Public  expire*  AugUSt    31  191  •• 


1 82 


CAMPBELL'S  ACTUAL  ACCOUNTING 


£40. 


MdKvrxi  ^<^jEi? 


iwHitoiie^^rlk'^ 


C.    W.    Bnrke    and    C.    A.    yoley,  Cfrpartnera    doing    buaJTiflim    nwdrn*    i-hm 
firm   nmn»    at    C.    W.    Burke    A    Co.    In    nnllflgfl    fiity, 


^ 


Orown 


- ^CYJ/n//^/a^^C^yJc^fj^_ Yonr   3tat< 


I  m II  IIIIIIIT 


M ) V  IVXOKTCiAG K.>  •^:AK K AJX T 


•^/^    Thft   Collftgw   City  Townsite    Conpany^  a   corporation   orpranlzed   and   doing 


bnBln«««   nndar    the    law    pf    tha    Stata    nf    Yottr    Stata 
/€p^- Diu»a 


Bight  Hnndrod (8Q0) 


Y^^^j;^^<^^<?i^c^^!^x;^K:^ 


tTrn»n 


CcwnA/^^'/i^y///'^  if 


!♦    S.      ^/y/t^- Lot   nttaberftg    {12)    tyglve^n   BlooJ 

(g$)    twaTity-wlT    In    the    nrlglwal    plat    nf    the    Qlty    of    Colleea    Hlty,    »h  1  ah 


pTitt    iw    on   file    In-  the   nffifta    nf    tha   Regleter    of   Saeda   of   Uroitn   County^ 
Yonr   State.  . 


>f  the 


To  aeoiira  paymant  to  the  eald  College  City  fownaite Comjoany 

a  of  Eight  Hundred  (860)  Pollare^  according  to  the  terms  and 


eondltlnna  nf  nne  oartaln  prnwiwwnyy  nnta, In  wnrdw  and  flgiiraw  as f ol« 

1.0W,^.  to-Wlt; _ . 


-fliX- 


College  City,  Y,  S.,  April  15,  191_, 

>ntha  aftwT  data  «a  Jnintly  protnlae  tn  pay  tn  the  nrdar  nf 


The  College  City  ?oi>neAte  Company 


t  eoo«oo 


Dollars 


Eight  Hundred  Oo/lOO   

at  their  nff tea  in  College  City,  Y.  S..  nj th  interest  at  eight  par  cent 

pftr   mnnTiiBt      Valne    re?>ei^e<i» 


C.    W.    Borke 


C.    A.    Foley 


thi^    t»ld    T)ft-fc#   >»»1ng   ayanutad    by    aald   C>    y.    Burke    and    C.    A.POley.    aa    00- 

partnera* ■ 


Ani  the  mortgagors  expressly  agree  to  pay  the  sum  of  money  above  secured,  without  relief  from  valuation  laws, 
and  upon  failure  to  pay  any  one  of  the  notes,  at  maturity,  or  any  installment  of  interest  when  due,  then  all  of  said 
notes  and  the  whole  of  said  debt,  are  to  be  due  and  collectible,  and  this  mortgage  may  be  foreclosed  accordingly. 
And  it  is  farther  expressly  agreed,  that  until  all  of  said  notes  are  paid  said  mortgagors  will  keep  all  legal  taxes  and 
charges  and  assessments  against  said  premises  paid  as  the  same  become  due,  awrf  will  keep  the  buildingt-  thereon 
insured  for  the  benefit  of  the  mortgagee^  as  hie  interests  may  app«av^  and  failing  to  do  so,  said  mortgagee  may  pay 
said  taxes  and  assessments  and  keep  the  buildinge  on  said  proporty  *<i>HHred,  and  the  amount  so  paid,  with  eight 
per  cent,  interest  thereon,  shall  be  a  part  of  his  debt  secured  by  this  mortgage. 


4ay/y^.A—  im//:J^^^:3. //L^  fifteenth ,.€/€/j^ /j^- Apr Ll_ 


^-9  


CAMPBELL'S  ACTUAL  ACCOUNTING 


183 


REPORT 

Report  of  School  Duties:    I  take  bookkeeping Hours  a  day. 

Hours  worked  since  last  report ,  Absent Total No.  of  Letters  written 

No.  of  Invoices  bo't  of  wholesale  houses Of  students ,   Total 

No.  of  Payments  made  in  cash ;   in  notes ;    in    acceptances ;    Total 

No.  of  Payments  rec'd  in  cash ;   in  notes ;    in    acceptances ;     TotaL 

No.  of  Sales  made:      To  T.   &   T.  Co ;    to  students ;   Total  No ,  $ 

No.  of  Entries   made Average   per   hour Time  on  trial  balance hours. 


NOTES 


Bills  Heceivable,  Ledger  Balance 

Total  uncollected  in  bill  book 

Total  value  of  notes  in  the  safe . 

Bills  Payable,  Ledger  Balance 

Total  unpaid  in  bill  book 


CASH 


Ledger  Balance 

In  bank,  Stb.  No,. 
In  safe,  Currency 
In  safe,  Checks,  _ 


Total  Cash  on  hand. 


TEACHER'S 


Respectfuily  submitted, 


.191. 


STAMP 


141.  I.  Fill  orders  approved  by  your  teacher  and  make  entry  in  your  sales  book,  observing 
that  the  sale  of  consignment  goods  (see  137,  13)  will  be  extended  into  the  Sundries  or  central 
column. 

2.  Enter  in  invoice  book  all  invoices  received  since  last  closing  that  are  unentered. 

3.  Accept  drafts  or  sign  notes  that  have  come  to  you  w'\i\\  invoices  received,  but  let  all 
other  invoices  received  from  students  remain  on  account  for  future  settlement. 

4.  Make  entry  for  payments  received  and  pay  all  bills  payable  that  are  due,  following  in- 
structions in  137,  4  and  5. 

5.  Select  some  one  of  your  customers  who  owes  you,  w^hom  we  will  suppose  to  be  a  car- 
penter, and  supposing  that  you  have  employed  him  to  re-arrange  the  shelving  in  your  store,  give 
him  a  receipt  on  account  for  $25.00  for  the  work  done,  and  make  entry  in  your  four-column 
journal  crediting  the  student  in  the  Customers'  Ledger  column  the  same  as  if  he  had  paid  you 
money.    What  account  do  you  debit?    If  you  cannot  decide  consult  your  teacher. 

6.  Make  a  shipment  of  merchandise  to  some  student  to  be  sold  for  you  on  commission  and 
secure  a  consignment  to  be  sold  by  you  in  the  same  way.  Make  entry  as  per  instructions  in 
i37»  5-  Observe  that  the  only  entry  made  at  the  time  of  receiving  a  consignment  is  for  the 
cash  paid  for  freight  and  is  made  directly  in  the  cash  book,  General  Ledger  column. 

7.  Sell  a  bill  of  merchandise  to  your  partner  charging  the  goods  at  cost  to  his  private 
account,  opened  on  page  3  of  your  general  ledger,  and  make  entry  in  your  four-column  journal 
crediting  merchandise  in  the  General  Ledger  column  in  order  that  it  may  not  appear  regularly 
among  your  sales,  the  partners  of  the  firm,  and  usually  the  employes,  being  allowed  their  goods 
at  cost.  When  you  post  these  items  of  merchandise  to  the  ledger,  make  an  explanatory  note  in 
the  wide  column,  Sold  to  partner,  as  you  will  need  to  take  a  special  note  of  this  item  when 
making  your  proof. 

8.  Draw  a  check  in  your  own  favor  for  $100  in  cash  and  either  have  it  certified^  at  the  bank 
or  exchange  it  for  a  certificate  of  deposit.  Make  entry  for  this  transaction  in  your  cash  book  on  the 


1.     Banks  do  not.  in  some  localities,  make  a  general  practice  of  certifying  checks,  preferring  to  cancel  t>i° 
check  and  to  issue  their  own  certificate  of  deposit  for  the  amount. 


i84  CAMPBELL'S  ACTUAL  ACCOUNTING 

credit  side  in  the  general  ledger  column,  charging  to  your  own  private  account,  also  opened  on 
page  3  of  the  ledger,  as  a  half  page  each  for  private  accounts  for  yourself  and  partner  will  be 
sufficient.  These  accounts  in  the  case  of  retail  dealers  might  easily  be  as  extended  as  any  cus- 
tomer's account,  but  we  will  use  them  merely  for  illustrative  purposes  in  the  closing  of  the  books. 

10.  Remit  to  wholesale  companies  in  full  for  invoices  purchased,  taking  advantage  of  the 
discounts,  and  place  orders  for  new  goods  with  any  of  the  companies  with  which  you  have  been 
dealing.  In  your  letters  intimate  that  you  have  recently  received  some  very  interesting  quotations 
from  some  other  houses  in  their  line  and  that  it  will  be  necessary  that  they  quote  their  very  best 
prices  if  they  hold  your  trade. 

11.  (a)     Prove  and  rule  cash 

(b)  Make  bank  deposit. 

(c)  Post  all  entries  to  your  ledgers. 

(d)  Prove  Bills  Receivable  and  Payable. 

(e)  Secure  customers'  orders  for  next  day's  trading,  disposing  at  this  time  of  goods  re- 
ceived on  consignment  but  mixing  consignment  goods  and  some  of  your  own  merchandise  in 
each  of  two  sales. 

12.  Prove  Merchandise,  following  previous  instructions  and  being  careful  to  carry  goods  sold 
at  cost  in  a  separate  department  column  as  instructed  in  io6,  30  (b),  or  you  might  add  to  the 
amount  of  the  selling  discount  deducted  on  line  8  of  your  expert  report  the  extra  discount 
allowed  on  the  sale  to  your  partner;  but  the  plan  in  106,  30  is  the  better.  Follow  the  same  plan 
as  to  shipments  that  have  been  made,  as  these  have  been  charged  out  also  at  cost.  If  you  have 
returned  merchandise  to  some  one,  treat  it  in  the  same  manner.  If  it  has  been  returned  to 
you,  it  will  perhaps  be  easiest  to  deduct  the  amount  from  both  debit  and  credit  of  Merchandise ; 
otherwise  it  will  make  a  distinct  class  as  it  comes  back  to  you  at  a  3%  discount  which  figures 
as  its  cost  price  in  this  proof. 

13     (a)     Make  entry  as  instructed  by  your  teacher  for  the  correction  of  all  errors  discovered. 

(b)  Make  entries  charging  each  partner  with  interest  on  his  withdrawals  and  crediting  him 
with  interest  on  his  investment  as  per  contract. 

(c)  Post  these   additional   entries   and   take  a  trial  balance. 

(d)  Make  out  a  balance  sheet  as  in  114  adjusting  the  loss  or  gain  on  each  partner's  private 
account  and  close  your  books. 

(e)  Draw  the  firm's  check  in  favor  of  each  partner  for  the  amount  of  his  gain  at  this  time 
or  if  either  partner's  private  account  shows  a  loss,  require  him  to  give  the  firm  a  note  for  the 
deficit  that  the  amount  of  his  investment  may  not  be  impaired.  If  Mr.  Wemple  should  need  to 
give  a  note,  your  teacher  will  act  for  him  in  signing  it.  You  will  make  entry  for  these  notes  or  cash 
payments  the  first  thing  in  your  next  day's  work.  Submit  your  books  to  your  teacher  with  all 
papers  reserved  for  his  inspection  and  a  duplicate  copy  of  your  full  report  carefully  filled  out  and 
neatly  copied  into  the  form  below. 

REPORT 

Report  of  School  Duties:    I  take  bookkeeping Hours  a  day. 

Hours  worked  since  last  report ,  Absent Total No.  cf  Letters  written 

No.  of  Invoices  bo't  of  wholesale  houses Of  students ,   Total 

No.  of  Payments  made  in  cash ;   in  notes ;    in    acceptances ;     Total 

No.  of  Payments  rec'd  in  cash ;   in  notes ;    in    acceptances ;     Total 

No.  of  Sales  made:     To  T.   &   T.  Co ;   to  students ;  Total  No ,  $ 

No.  of  Entries  made Average  per  hour Time  on  trial  balance hours. 


CAMPBELL'S  ACTUAL  ACCOUNTING 


185 


NOTES 

CASH 

Jiills  JReceivable,  Ledger  Balance 

Ledger  Balance 

Tn  bank,  Rtb.  Nn.           , 

In  safe,  Currency 

In  safe,  ChenkH, 

Bills  Payable,  Ledger  Balance 

Total  unpaid  ia  bill  book 

Total  Cash  on  hand 

MERCHANDISE 


Cost  of  Mdse.  bought 

Present  inventory 

Cost  of  goods  sold  

Sales  of  merchandise 

Gain,  red  ink ;  Loss,  black 

Errors:  Ourfvr.red;  cont. black 


Department  A 
Goods 


Depnrtment  E 
Goods 


TEACHER'S  MARKING 


Accuracy . . . 
Neatness . . . 
Orderliness. 

Records  

Progress. . . . 
Average. . . . 


TEACHER S 


Respectfully  submitted, 


.191.. 


STAMP 


142.  I.  Detach  from  your  prepared  blanks,  Forms  82,  83,  84,  and  85.  Observe  that  82  is 
an  invoice  of  hardware  from  the  Van  Camp  Hardware  Company ;  that  83  is  the  freight  bill  of  the 
R.  R.  Co. ;  that  84  consists  of  tickets  representing  the  goods ;  and  that  85  is  your  confidential 
price  list. 

(a)  Open  in  your  general  ledger  on  page  35  an  account  with  Van  Camp  Hardware  Company, 
Parent  House,  and  index  it  as  other  accounts. 

(b)  Make  entry  for  the  invoice  by  pasting  it  into  your  invoice  book  among  other  invoices, 
but  in  extending  it  into  the  money  column  note  that  it  must  not  be. extended  with  the  other 
invoices.  Set  apart  the  left  hand  money  column  for  this  class  of  goods  alone  and  mark  it  Branch 
House  Merchandise  or  Hardware  (as  you  have  no  Hardware  of  your  own)  marking  the  other 
column  General  Merchandise.  These  columns  will  be  used  in  this  manner  while  working  the 
remainder  of  this  outline. 

(c)  Pay  the  freight  bill  and  charge  it  to  a  special  Freight  accoimt  which  you  may  open  on 
page  36  of  your  ledger  and  designate  as  Branch  House  Freight. 

(d)  Place  the  tickets  representing  the  hardware  in  a  separate  merchandise  envelope  which 
you  will  designate  as  Department  B. 

(e)  File  your  catalog  and  price  list  with  Receipts  and  Papers  for  reference. 

(f)  Rearrange  the  pages  of  your  sales  book  so  that  you  will  have  4-column  pages  instead  of 
3-column,  while  working  the  remainder  of  the  outline  and  mark  these  columns,  Items,  Sundries, 
Special  Branch  House  and  Merchandise.  Any  unused  3-C0I.  pages  can  be  transferred  to  the  back 
of  the  loose-leaf  sales  book. 

2.  Fill  orders  approved  by  your  teacher  and  make  entry  in  your  sales  book,  observing  that 
the  sales  of  consignment  goods  on  orders  secured  as  in  141,  11  (e),  include  some  of  your  merchan- 
dise in  addition  to  the  consignment  stock.  In  billing  these  orders  and  in  entering  them  in  your 
sales  book,  discount  the  consignment  goods  and  your  own  merchandise  separately,  so  that  the 
net  amount  of  consignment  sales  in  each  bill  may  be  extended  into  the  sundries  column  and  the 
net  amount  of  merchandise  into  the  merchandise  column.  A  form  for  this  bill  which  will  also 
serve  to  suggest  the  form  for  the  sales  book  entry  is  presented  on  the  page  following. 


1 86 


CAMPBELL'S  ACTUAL  ACCOUNTING 


(a) 


*LL  CLAIMS  FOR  SHORTAGE  OR  DAMAGE  MUST  BE  MADE  WITHIN  TWO  DAYS  FROM  RECEIPT  OF  SHIPMENT        REFER  TO  ORDER  NUMBER 


Cf)ester  W.  ilurfee 

JOBBER  IN  GROCERIES  AND  GROCER  S  SUNDRIES 
COLLEGE  CITY.  Y.  S. 


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Observe  that  while  you  have  heretofore  taken  one  uniform  trade  discount  off  the  total  of 
all  bills  sold,  this  plan  has  been  followed  to  prevent  your  work's  becoming  too  intricate  for  your 
skill,  and  that  in  business  you  will  be  liable  to  have  a  different  rate  of  trade  discount  on  each 
separate  item  of  the  bill.  In  your  sales  book  entry,  the  first  extension  in  the  form  above  which 
represents  consignment  goods  would  be  extended  into  the  Sundries  column  and  the  second,  repre- 
senting your  own  merchandise,  into  the  Merchandise  column. 

Sell  Dep't  E  goods  to  T.  &  T.  Co,  Only  those  included  in  proof  should  be  sold  if  student 
wishes  to  keep  his  work  as  easy  as  possible.  Selling  unproved  goods  may  makd  errors  harder 
to  find  and  corrections  more  difficult  but  will  give  better  practice. 

3.  Enter  in  invoice  book  all  invoices  received  since  last  closing  that  are  unentered. 

4.  Make  payments  by  notes,  acceptances  (if  drafts  accompany  any  bills),  or  drafts  on  firms 
that  owe  you,  for  all  invoices  received ;  and  make  payment  in  cash  for  all  time  paper  (notes  or 
acceptances)  matured.    See  136,  5  (a)  and  119,  8. 

5.  Make  entry  for  payments  received  as  instructed  in  136,  6. 

6.  Make  a  shipment  of  merchandise  to  some  student  to  be  sold  on  commission  and  secure  a 
consignment  of  goods  from  this  student  or  some  other  to  be  sold  by  you  on  commission.  Make 
entry  as  instructed  in  136,  2  and  3. 

7.  Render  account  sales  of  all  consignments  that  have  been  sold  out  and  if  any  goods  of  any 
consignments  received  prior  to  this  day's  work  remain  unsold,  make  a  special  sale  of  them  to  one 
of  your  customers  on  regular  terms. 

8.  Select  some  one  of  your  customers  who  is  in  debt  to  you  and  give  him  a  receipt  for  $10 
on  account,  explaining  that  it  is  a  rebate  allowed  him  on  account  of  his  liberal  patronage.  Charge 
this  rebate  to  Merchandise  Discount  in  your  journal.    What  account  do  you  credit? 

9.  Exchange  your  residence  lot  for  a  business  lot  adjoining  the  one  recently  purchased  by 
the  firm  and  give  your  personal  note  secured  by  mortgage  for  the  difference  in  valuation.  Your 
residence  lot  cost  $500,  your  busines  lot  is  valued  at  $1,000.  Observe  that  two  deeds  and  a  mort- 
gage must  be  made  out  to  properly  complete  this  transaction. 

(a)  Take  a  warranty  deed  form  from  your  business  blanks  and  fill  it  out  making  yourself 
the  party  of  the  first  part  and  the  Townsite  and  Trading  Co,  the  party  of  the  second  part,  and 
transferring  by  exactly  the  same  description  the  property  deeded  to  you  as  a  residence  lot.  The 
only  essential  difference  in  form  between  this  deed   and  the  one   illustrated   in   138,   lies   in  the 


CAMPBELL'S  ACTUAL  ACCOUNTING  187 

reversing  of  the  parties,  the  signature,  and  the  notary's  certificate,  in  which  respect  this  deed  will 
more  resemble  the  mortgage  form  presented  in  140.  There  will,  however,  be  only  one  signer  in- 
stead of  two. 

(b)  When  you  have  prepared,  signed  with  witnesses,  and  acknowledged  before  a  notary 
public  the  above  described  deed  to  the  Townsite  and  Trading  Co.,  proceed  to  prepare  a  deed  in 
which  the  Townsite  and  Trading  Co.  will  be  the  party  of  the  first  part  and  you,  personally,  the 
party  of  the  second  part  and  which  will  transfer  to  you  a  business  lot  in  the  same  block  and  adjoin- 
ing the  lot  purchased  some  time  ago  by  your  firm.  The  form  of  this  deed  follows  the  form  pre- 
sented in  138,  exactly  except  as  to  description  of  property  and  amount  of  money.  Prepare  it 
carefully,   ready   for  the   company's   and   notary's  signatures. 

(c)  Draw  up  your  note  in  favor  of  the  Townsite  and  Trading  Co.  for  $500  and  proceed  to 
fill  out  a  mortgage  taken  from  your  business  blanks  making  yourself  the  party  of  the  first  part,  and 
the  Townsite  and  Trading  Co.  the  party  of  the  second  part,  and  describing  in  it  the  business  lot  for 
which  you  have  just  traded,  that  is,  the  description  in  the  mortgage  must  be  the  same  as  in  the 
company's  deed  to  you.  In  all  other  respects  this  mortgage  will  be  very  similar  to  the  form 
presented  in  140,  the  only  difference  being  your  individual  signature  instead  of  the  signatures  of 
yourself  and  partner. 

(d)  Observe  that  as  this  is  an  individual  transaction,  entirely  outside  of  the  firm's  business, 
it  has  no  place  on  the  firm's  books  and  there  will  be  no  entry. 

10.  Buy  from  some  one  in  the  room,  a  note  against  one  of  your  creditors.  Make  entry  in  your 
cash  book  charging  Bills  Receivable  and  make  a  record  of  the  note  in  your  bill  book.  If  you  can 
obtain  this  note  for  less  than  its  face  value,  do  so;  but  in  that  case  be  careful  in  making  your 
entry  not  to  place  the  amount  of  discount  in  the  Mdse.  Disct.  column.  This  belongs  to  Interest 
&  Discount,  and  you  will  be  less  liable  to  error  if  you  make  the  entry  in  your  journal,  and  post 
the  cash  immediately  to  the  cash  book.  Another  form  for  making  this  entry  would  be  to  enter 
the  face  of  the  note  on  the  credit  side  of  the  cash  book  and  the  amount  of  discount  on  the  debit 
side,  both  items  appearing  in  the  General  Ledger  column;  but  the  journal  entry  is  the  better  in 
this  set  of  books. 

11.  When  you  have  secured  and  entered  this  note  as  above,  transfer  it  to  the  maker  as  a 
payment  on  your  account  paying  or  receiving  the  difference  in  cash.  Note  in  your  bill  book  in  the 
How  Paid  column  what  you  have  done  with  this  note  and  make  entry  for  the  transaction  in 
your  journal,  posting  cash  (if  there  be  any  in  the  entry)  immediately  to  your  cash  book.  If  this 
note   be   interest-bearing,   credit    Interest   &   Discount  for  the  interest. 

12.  Remit  to  wholesale  houses  in  full  for  invoices  last  received,  taking  advantage  of  the  dis- 
counts, and  place  orders  with  the  H.  W.  Spurr  Coffee  Co.  for  coffee  and  with  F.  W.  Stone  &  Co. 
for  tea,  using  your  own  judgment  as  to  quantities.  Write  neat  business  letters  stating  the  amount 
of  your  remittance  and  the  discount  to  which  you  are  entitled  and  mentioning  the  new  order 
which  you  enclose. 

13.  Detach  from  your  Prepared  Blanks  forms  86,  87,  and  88,  second  invoices  of  hardware 
from  your  Parent  House  with  the  freight  bill  and  goods.  Make  entry  as  instructed  for  forms  82, 
83  and  84  in  142,  i. 

14.  (a)     Prove  and  rule  cash. 

(b)  Make  bank  deposit. 

(c)  Post  all  entries.  In  posting  from  your  invoice  book,  you  will  have  one  additional 
column  representing  hardware  or  branch  house  merchandise  received.  Post  the  total  footing  of 
this  column  to  an  account  in  your  ledger  which  you  may  open  in  the  middle  of  page  36  and  will 
style  Hardware,  Branch  House  Goods. 

(d)  Prove  Bills  Receivable  and  Payable. 

(e)  Take  an  abstract  of  the  personal  ledgers  and  when  the  sub-ledgers  balance,  rule  and 
balance  the  Accounts  Receivable  and  Payable  accounts. 

(f)  Take  trial  balance  of  general  ledger. 


i88 


CAMPBELL'S  ACTUAL  ACCOUNTING 


15.  Secure  orders  for  next  day's  trading,  including  C.  Connick,  one  of  E.  H.  Wemple's 
former  customers,  among  your  buyers.  In  filing  these  orders  dispose  of  all  consignment  goods 
that  you  have  on  hand  and  of  as  much  hardware  as  possible.  In  making  sales  of  consignment 
goods,  mix  these  with  your  own  merchandise  in  each  order  as  in  the  sale  illustrated  in  142,  2 
(a).  In  making  sales  of  hardware  (branch  house  goods)  observe  that  your  price  list  quotes  a 
trade  discount  of  162/3%  from  catalog  prices  instead  of  the  usual  3%  customary  in  the  school- 
room. In  making  out  customers'  orders  for  these  branch  house  goods  you  will  discount  and 
extend  goods  of  this  class  by  themselves  as  in  the  two  items  of  consignment  goods  included  in  the 
form  in  142,  2  (a).  Observe,  however,  that  in  making  sales  of  hardware  to  students  who  are  not 
as  far  along  in  their  work  as  you  are,  you  will  allow  them  only  the  3%  discount  and  will  extend 
the  amount  of  the  hardware  into  the  Sundries  column  as  you  have  been  doing  in  the  sales  of  con- 
signment goods.  But  in  the  case  of  students  who  are  up  with  you  or  ahead  of  you  in  their  school 
work,  you  will  allow  the  full  162/3%  trade  discount  quoted  in  your  confidential  price  list,  dis- 
counting hardware  items  separately  and  extending  the  net  amount  into  the  Special  Hardware 
column  added  to  your  sales  book  in  the  interest  of  this  business.  Secure  8  or  10  orders  ready  for 
your  teacher's  approval  and  then  submit  these  orders  with  your  books  properly  arranged  for  in- 
spection and  with  a  duplicate  copy  of  your  daily  report  copied  neatly   in  the  form  following. 

REPORT 

Report  of  School  Duties:    I  take  bookkeeping Hours  a  day. 

Hours  worked  since  last  report ,  Absent. Total No.  of  Letters  written 

No.  of  Invoices  bo't  of  wholesale  houses Of  students ,  Total 

No.  of  Payments  made  in  cash ;  in  notes ;    in    acceptances ;     Total 

No.  of  Payments  rec'd  in  cash ;   in  notes ;    in    acceptances ;     Total 

No.  of  Sales  made:     To  T.  &  T.  Co ;    to  students ;  Total  No ,  $ 

No.  of  Entries  made Average  per  hour Time  on  trial  balance hours. 


NOTES 


£ills  Receivable,  Ledger  Balance  , 

Total  uncollected  in  bill  book 

Total  value  of  notes  in  the  safe 

Bills  Payable,  Ledger  Balance 

Total  unpaid  in  bill  book 


CASH 


Ledger  Balance 

In  bank,  Stb.  No.. 
In  safe,  Currency 
In  safe,  Checks,  _ 


Total  Cash  on  hand. 


TEACHER'S 


Respectfully  submitted, 


.191..., 


STAMP 


143.  I.  Fill  orders  approved  by  your  teacher  and  enter  In  your  sales  book.  In  billing 
remember  to  discount  consignment  goods  and  branch  house  goods  separately,  and  in  entering 
remember  to  extend  the  net  amounts  of  consignment  sales  into  the  Sundries  column  and  the  net 
amount  of  branch  house  sales  on  which  you  have  allowed  162-3%  trade  discount  into  the  Special 
Branch  House  column,  extending  branch  house  sales  at  3%  discount  into  the  Sundries  column.  In 
the  case  of  sales  of  hardware,  send  out  with  one  half  of  the  bills  a  draft  at  30  days  for  the  buyer's 
acceptance,  and  with  each  of  the  remaining  invoices  that  include  hardware  a  joint  and  several 
note  at  30  days  for  the  buyer's  signature.    See  form  of  note  sent  out  by  Mr.  Burke  in  55  (c). 

2.     Check  and  enter  all  invoices  received. 


CAMPBELL'S  ACTUAL  ACCOUNTING  189 

3.  Make  payment  for  invoices  as  you  see  fit  except  when  otherwise  specified  by  your  cred- 
itors. 

4.  Make  entry  for  all  payments  received  whether  for  notes  and  acceptances  or  for  accounts, 
noting  carefully  this  difference  in  entry,  that  payments  of  accounts  are  extended  into  the  Cus- 
tomers' Ledger  columns  and  payments  of  notes  or  acceptances  into  the  General  Ledger  column. 

5.  Make  payment  for  all  of  your  own  notes  or  acceptances  that  have  matured.  Enter  in 
cash  book,  General  Ledger  column. 

6.  Make  a  shipment  of  merchandise  to  some  student  to  be  sold  on  commission  and  draw 
on  him  at  sight  for  about  one  half  of  the  cost  value  of  the  shipment.  Review  information  given 
you  on  the  subject  of  shipments  and  consignments  in  106  if  necessary.  Observe  that  in  making 
this  shipment  you  will  deliver  to  the  consignor  the  shipping  invoice  only,  that  the  R.  R.  shipping 
order  will  go  with  the  goods  to  the  freight  office  and  that  the  original^  bill  of  lading  will  be  trans- 
ferred to  the  bank  as  security  for  the  payment  of  the  draft  which  you  draw.  Take  your  pass  book 
with  you  to  the  bank,  that  the  banker  may  give  you  credit  for  the  amount  of  the  draft  less  what- 
ever interest  charge  he  may  make  for  the  time  necessary  for  collecting,  and  make  a  corresponding 
record  in  your  check  book. 

7.  Secure  from  some  student  a  consignment  of  merchandise  to  be  sold  on  commission  and 
if  no  consignor  has  as  yet  drawn  a  draft  on  a  consignment  in  your  hands,  ask  your  consignor  at 
this  time  to  draw  on  his  shipment  for  about  half  of  its  value. 

8.  Render  account  sales  of  all  consignments  closed  out  and  make  entry  according  to  previous 
instructions. 

9.  Sell  to  the  Townsite  and  Trading  Co.,  for  cash  less  2^  per  cent.,  all  goods  in  your  Depart- 
ment E  envelope.  This  transaction  might  be  made  directly  in  the  cash  book  but  it  is  more 
convenient  for  proof  purposes  and  correct  from  the  standpoint  of  a  history  of  business  done  to 
have  your  account  with  the  T.  &  T.  Co.  show  all  transactions.  (See  83,  b).  Enter  the  sale  in 
the  sales  book  and  the  payment  in  the  cash  book.     Use  Voucher  Check  as  usual. 

10.  Remit  to  wholesale  houses  for  invoices  last  received  and  place  a  new  order  with  each 
and  an  additional  order  with  the  Harmer  Produce  Company  for  a  large  quantity  of  apples,  25 
boxes  of  oranges,  200  sacks  barley,  and  such  other  goods  offered  in  their  price  list  as  you  see 
fit  to  order.  Write  an  original  letter  and  secure  your  teacher's  criticisms  when  you  present  it  for 
his  approval. 

11.  Detach  from  your  Prepared  Blanks  forms  89,  90  and  91,  making  entry,  paying  freight 
and  putting  away  goods  as  in  the  case  of  former  invoices  received  from  your  parent  house. 

12.  Detach  from  your  Prepared  Blanks  forms  92  and  93.  Observe  that  92  is  a  legal  notice 
from  the  trustee  of  the  Fruitland  Grocery  Co.,  one  of  Mr.  Wemple's  customers  who  has 
become  insolvent,  notifying  you  to  submit  an  itemized  sworn  statement  of  your  account  against 
this  company.  And  that  93  is  such  a  statement  already  made  out  in  the  name  of  the  firm  and  sworn 
to  by  E.  H.  Wemple,  the  member  of  the  firm  who  knows  the  most  about  it.  File  form  92  in  your 
letter  file  and  place  93  in  your  file  of  papers  to  be  delivered  to  your  teacher  when  you  present 
your  books  for  marking. 

13.  (a)     Prove  and  rule  cash. 

(b)  Make  bank  deposit. 

(c)  Post  all  entries.  For  Invoice  Book  see  instruction  for  previous  posting.  In  posting 
from  the  sales  book,  you  will  have  the  footing  of  the  Special  Branch  House  column  which  you 
will  post  to  the  credit  of  the  Hardware  account  on  page  36,  and  you  may  also  have  a  number 
of  hardware  items  (sold  at  3%  discount)  in  your  Sundries  column  which  you  will  post  to  the 
Hardware  account  on  page  36  separately. 

(d)  Prove  Bills  Receivable  and  Payable. 

(e)  Take  abstract  of  personal  ledgers  and  when  these  prove,  rule  Accounts  Receivable 
and  Accounts  Payable. 

(f)  Take  trial  balance  of  general  ledger. 

1.     Use  special  form,  Order  Bill  of  Lading  to  accompany  a  draft.    See  Form  54,  in  106,  14,  (b). 


190 


CAMPBELL'S  ACTUAL  ACCOUNTING 


14,  Secure  orders  for  your  next  day's  trading,  disposing  as  usual  of  all  consignment  goods 
and  making  extensive  sales  of  hardware  and  of  your  own  merchandise  but  do  not  sell  out  your 
entire  stock  in  any  department  and  be  careful  to  reserve  40  sacks  barley  and  all  the  oranges  for 
later  instructions.  Secure  8  or  10  orders  and  submit  them  to  your  teacher  for  approval  with  your 
books  properly  arranged  for  inspection  and  the  usual  duplicate  of  the  daily  report  copied  neatly 
into  the  form  below. 

REPORT 

Report  of  School  Duties:    I  take  bookkeeping Hours  a  day. 

Hours  worked  since  last  report ,  Absent Total.... 

No.  of  Invoices  bo't  of  wholesale  houses Of  students... 

No.  of  Payments  made  in  cash ;   in  notes ;    in 

No.  of  Payments  rec'd  in  cash ;   in  notes ;    in 


No.  of  Letters  written.. 

,   Total 

acceptances , ;     Total. 

acceptances ;     Total. 


No.  of  Sales  made:     To  T.   &  T.  Co ;    to  students ;  Total  No ,  $ 

No.  of  Entries  made Average   per  hour Time  on  trial  balance hours. 


NOTES                                               1 

CASH 

JBills  Heceivctble,  Ledger  Balance 

Ledger  Balance 

Tn  hnnk,  Rt.h.  Nn.            ,    ,  , 

In  safe,  Currency  .         

Total  value  of  notes  in  the  safe .... 

Tn  nafe,  Cheoks, 

Bills  Payable,  Ledger  Balance 

Total  unpaid  in  bill  book .          

Total  Cash  on  hand 

TEACHER'S 


Respectfully  submitted, 


191 ... .  STAMP 

144.  I.  Fill  orders  approved  by  your  teacher  at  last  closing  and  make  entries  carefully,  fol- 
lowing instructions  given  in  143,  i.  Deliver  the  goods  and  invoice  of  the  sale  made  to  C. 
Connick  into  the  envelope  of  papers  that  will  go  to  your  teacher  with  your  books  at  the  end  of 
this  day's  work. 

2.  (a)  Render  account  sales  of  all  consignments  on  hand  and  sold  out.  If  any  are  not  sold 
out  at  this  time,  make  extra  sales  until  you  dispose  of  them  and  then  render  account  sales  and 
remit  by  check  to  the  consignors. 

(b)  Make  a  shipment  of  oranges  to  U.  R.  Teacher  &  Co.,  College  Center,  sending  not  less 
than  ten  nor  more  than  twenty  boxes  of  the  oranges  bought  from  the  Harmer  Produce  Company. 
Render  shipping  invoice  and  make  out  bills  of  lading  in  due  form.  Deliver  Invoice  and  B/L  by 
placing  in  the  envelope  of  papers  to  be  delivered  to  your  teacher  when  your  books  are  sub- 
mitted. 

3.  Deliver  one  card  each  of  oranges  and  barley  (reserved  by  instructions  in  making  up 
customers'  orders  in  143,  14)  to  your  teacher,  telling  him  that  the  oranges  are  to  be  put  in  your 
cellar  for  personal  use  and  the  barley  to  be  taken  to  the  stable  for  the  firm's  delivery  horse ;  and 
state  what  entry  you  have  decided  to  make  for  the  transaction. 

4.  Sell  the  business  property  for  which  you  traded  in  142,  9,  to  the  firm  for  $1,050;  they  to 
assume  the  note  and  mortgage  for  $500  which  stands  against  the  property  and  to  pay  you  cash 
for  the  difference  less  the  accrued  interest.  Compute  the  interest  on  the  $500  note  from  its  date 
to  the  present  date  and  deduct  the  amount  from  $1,050.  Draw  the  firm's  check  in  your  own 
favor  and  place  it  with  your  personal  papers.    This  real  estate  and  the  note  given  for  it,  now 


CAMPBELL'S  ACTUAL  ACCOUNTING  191 

appear  on  the  firm's  books  for  the  first  time.  Make  entry  in  the  journal  charging  Real  Estate 
$1,050,  crediting  Mortgages  Payable  for  the  assumed  note  of  $500,  crediting  Interest  &  Discount 
for  the  interest  accrued  on  the  note  to  date,  and  crediting  Cash  for  the  amount  of  the  check  to 
you.  Post  cash  immediately  to  the  cash  book,  General  Ledger  column.  Make  a  record  of  the  note 
in  your  bill  book.     Execute  a  deed  from  yourself    to    your    partner    for    an    undivided    one-half 

interest  in  "Lot ,  Block of  the  original  plat,  etc."  following  out  the  description  in  the  deed 

which  you  hold.  In  all  other  respects  this  deed  will  be  similar  to  the  deed  which  you  executed  in 
favor  of  the  Townsite  Co.  in  142,  9  (a).  Observe  that  by  deeding  directly  to  your  partner  an 
undivided  one-half  interest  in  the  property  and  retaining  an  undivided  one-half  interest  yourself, 
the  title  to  this  lot  stands  exactly  as  the  title  to  the  lot  which  the  Townsite  Co.  deeded  to  yourself 
and  partner  jointly.  It  would  seem  superfluous  for  you  to  deed  jointly  to  yourself  and  partner  in 
this  case.     Hence  the  plan  of  transfer  followed  above. 

5.  (a)  Detach  from  your  Prepared  Blanks  Form  94.  Observe  that  it  consists  of  the  legal 
notice  from  the  trustee  of  bankruptcy  in  the  matter  of  the  Fruitland  Grocery  Company,  informing 
you  that  you  will  receive  in  settlement  of  your  claim  against  that  company  60%  of  the  $88.50 
owed  you  by  the  company  and  that  the  same  will  be  delivered  to  you  in  person  or  to  your  order 
on  return  of  the  letter  attached  to  the  bottom  of  the  form.  Detach  this  creditor's  letter  to  trustee 
filling!  in  the  only  remaining  blank  with  the  words,  to  me  by  mail,  and  sign  the  firm  name  as 
creditor.  Place  the  creditor's  letter  with  papers  to  be  handed  to  your  teacher  when  books  are 
examined. 

(b)  Detach  from  your  Prepared  Blanks  Form  95,  which  you  will  observe  is  the  trustee's 
warrant  for  $53.10  or  60%  of  the  debt.  Make  entry  in  the  cash  book  for  the  cash  received,  credit- 
ing the  Fruitland  Grocery  Co.  exactly  as  you  would  credit  any  other  customer,  explaining,  60% 
of  account  in  full  settlement.  You  will  observe  that  40%  of  this  account  is  lost,  but  since  the  account 
is  one  that  Mr.  Wemple  brought  into  the  firm  as  a  part  of  his  assets  and  for  which  he  received 
credit  at  the  time  as  a  part  of  his  investment,  this  loss  will  be  charged  to  him  personally.  Turn  to 
your  four-column  journal  and  make  entry  charging  E.  H.  Wemple  in  the  Sundries  column  and 
crediting  Fruitland  Grocery  Company  in  the  Customers'  Ledger  column  for  the  amount  of  the 
loss.  Explain,  E.  H.  Wemple  is  charged  for  loss  on  account  of  Fruitland  Grocery  Company's  insolvency 
which  was  a  part  of  his  investment  as  partner.  Take  up  Form  94,  the  trustee's  check  for  60%  of 
account,  and  observe  that  it  is  a  special  form  of  voucher  check  with  a  special  receipt  attached. 
Write  your  name  on  the  face  of  the  check  following  the  words  "pay  to  the  order  of."  Ob- 
serve that  this  unnatural  writing  of  your  name  in  papers  payable  to  you  is  often  unavoidable 
when  using  prepared  vouchers  for  illustrative  purposes.  Were  this  an  actual  business  transaction, 
your  name  would  have  been  written  in  the  check  by  Mr.  Archer.  Insert  the  date  also  in  both 
check  and  receipt.  Antedate  it  two  days  to  allow  for  time  in  transit  and  sign  the  receipt  without 
detaching  it  from  the  check.  Then  fold  along  the  dotted  line  so  that  the  face  of  the  check  will  be 
exposed  and  place  in  your  cash  drawer  ready  for  deposit  in  your  bank  with  other  cash  items. 

6  (a)  Endorse  and  remit  to  the  Van  Camp  Hardware  Company,  your  parent  house,  all  the 
notes  and  acceptances  received  for  sales  of  hardware  and  make  entry  charging  the  Van  Camp 
Parent  House  account. 

(b)     Collect  all  matured  notes  or  acceptances  and  pay  all  that  you  owe. 

7.  Detach  from  your  page  of  prepared  blanks.  Form  No.  96,  the  bill  of  the  College  Real 
Estate  and  Collection  Co.,  for  services  in  recording  deeds  and  paying  taxes.  Carefully  separate 
the  items  that  pertain  to  your  residence  lot  from  those  that  pertain  to  the  firm's  business  lot  and 
make  entry,  remembering  that  the  former  should  be  charged  to  your  private  account  as  a  per- 
sonal expense  to  you,  and  the  latter  to  the  Real  Estate  Account  of  the  firm.  Write  your  firm  name 
and  the  present  date  at  the  head  of  the  bill  and  file  the  item  dates  giving  item,  (a),  the  date  of 


1.    Be  careful  to  fill  in  your  own  name  and  the  date  In  all  prepared  blanks  that  require  it. 


192  CAMPBELL'S  ACTUAL  ACCOUNTING 

transaction  137,  9  and  10;  and  items,  (b),  (c)  and  (d),  the  present  date.  Pay  by  check  at  Real 
Estate  Office  or  the  teacher's  desk  and  have  the  bill  receipted.  File  with  Expense  Bills,  num- 
bering the  bill  consecutively  with  other  expense  bills  to  identify  it  in  entry  and  explanation.  Also 
detach  and  pay  Water  Company's  bill,  Form  No.  97,  charging  to  Expense  and  numbering  and 
filing  as  above. 

8.  Charge  Expense  and  credit  each  partner's  private  account  for  the  amount  of  salary. 
Charge  Interest  &  Discount^  and  credit  each  partner  with  6  per  cent,  interest  for  the  time  elapsed 
since  last  closing,  counting  time  as  you  do  for  the  maturity  of  notes.  Charge  each  partner^  with 
interest  on  withdrawals  (as  they  appear  in  the  respective  private  accounts)  from,  the  date  of  the 
item  to  the  present  time. 

9.  (a)     Prove  and  rule  Cash. 
(b)     Make  bank  deposit. 

(d)  Prove  Bills  Receivable  and  Payable. 

(e)  Take  an  abstract  of  the  personal  ledgers  and  when  sub-ledgers  prove,  rule  Accounts 
Receivable  and  Payable  in  general  ledger. 

10.  Take  a  careful  inventory  of  all  the  goods  remaining  in  your  stock  of  branch  house  mer- 
chandise (hardware),  and  proceed  to  prove  all  merchandise  transactions  connected  with  your 
branch  house  department.  As  you  will  observe  by  consulting  your  confidential  price  list,  the  profit 
on  these  goods  is  based,  not  on  an  original  list  price,  as  in  your  customary  dealings  with  students, 
but  on  a  basic  cost  price,  as  in  the  business  of  C.  W.  Burke.  See  footnote  to  price  list.  You  will, 
therefore,  rule  a  blank  form  with  one  total  and  two  department  columns  similar  to  the  form  used 
by  Mr.  Burke  in  proving  merchandise  in  106,  30  (e).  In  working  out  this  expert  proof,  observe 
that  the  hardware  sold  at  162/3%  discount,  the  total  amount  of  which  you  will  learn  from  the 
footing  of  your  Special  Branch  House  column  in  the  sales  book,  will  be  treated  as  one  class  of 
goods,  which  you  may  style  Class  A,  on  which  the  per  cent,  of  profit  to  be  added  will  be  25%  and 
that  the  goods  sold  at  3%  discount  will  be  assigned  to  a  separate  class  or  department  which  you 
may  style  Class  B,  the  per  cent,  of  profit  to  be  added  in  proving  this  class  being  453/2%.  See 
footnote  in  price  list.  The  total  amount  of  sales  in  Class  B  you  will  learn  by  deducting  the  sales 
of  Class  A  from  the  total  credit  of  Branch  House  Merchandise  in  your  ledger.  In  all  other 
respects  this  proof  will  be  very  similar  to  that  in  the  former  C.  W.  Burke  business  referred  to. 
You  should  be  able  to  work  it  out  without  further  instructions. 

11.  When  you  have  completed  the  proof  of  your  Hardware  account,  consult  your  teacher,  if 
necessary,  as  to  the  proper  entries,  to  correct  any  errors  that  you  find,  and  when  these  correction 
entries  are  made  and  posted,  proceed  to  render  to  your  parent  house  a  statement  of  the  condition 
of  the  branch  house  business  as  follows : 

(a)  Enter  the  inventory  of  hardware  on  hand  on  the  credit  side  of  the  Hardware  account 
as  you  would  the  Mdse.  Inventories  in  closing  an  account  with  your  own  merchandise.  Balance 
the  Branch  House  Freight  account  with  red  ink  and  transfer  the  amount  to  the  debit  side  of  the 
Hardware  account.  The  difference  between  the  two  sides  will  then  represent  the  loss  or  gain  of 
the  business.  Transfer  it  by  a  red  ink  entry  to  the  account  with  Van  Camp  Company,  Parent 
House. 

(b)  Make  entry  charging  the  Van  Camp  Company,  Parent  House,  and  crediting  your 
Expense  account  for  the  proportion  of  your  rent  which  they  are  entitled  to  pay  under  their  con- 
tract, counting  each  day  that  has  transpired  as  10  days  provided  the  total  time  does  not  exceed 
one  half  of  the  term  for  which  you  have  paid  rent  as  per  lease  executed  at  the  beginning  of  this 
outline. 

(c)  Make  a  second  entry  charging  the  company  and  crediting  your  Salaries  account  for  clerk 
hire  at  $100  per  month  for  the  time  that  has  elapsed,  counting  as  in  (b)  above. 

1.  Another  method  of  making  this  interest  settlement  will  be  presented  in  Outline  V. 

2.  Observe  that  interest  on  the  loss  on  the  Fruitland  Grocery  Company  which  was  pharged  to  Mr.  Wemple, 
should  be  counted  from  the  date  of  his  investment  as  it  never  came  into  the  firm  and  its  withdrawal  therefore 
dates  back  to  the  beginning  of  the  partnership. 


CAMPBELL'S  ACTUAL  ACCOUNTING 


193 


(d)  Draw  your  check  in  favor  of  the  Van  Camp  Company  for  the  balance  due  as  shown  by 
the  account  of  the  Van  Camp  Company,  Parent  House,  at  this  time.  Enter  in  your  cash  book,  on 
credit  side,  General  Ledger  column  and  post  at  once  to  the  Parent  House  account.  Render  a 
statement  in  the  form  following  and  attach  to  it  the  check  you  have  just  drawn,  reserving  these 
papers  to  be  presented  to  your  teacher  with  the  books. 


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12.  Prove  Merchandise,  following  previous  instructions,  and  watching  carefully  for  items 
that  are  handled  on  irregular  terms. 

13.  Make  entries  as  instructed  by  your  teacher  for  the  correction  of  all  errors  discovered  in 
your  merchandise  proof,  post  these  entries  and  take  the  trial  balance.  Make  a  balance  sheet  show- 
ing the  loss  or  gain  adjusted  on  each  partner's  private  account  (see  114),  and  the  net  private  loss 
or  gain  carried  to.  the  stock  account.  Close  your  books  carefully  and  trial  balance  them  after 
closing  to  insure  accuracy.  Then  prepare  Analytical  Statement  as  in  86  for  teacher's  filing  and 
submit  all  of  your  books  to  be  graded  with  a  duplicate  copy  of  your  full  report  copied  neatly  into 
the  form  below.  Submit  also  the  usual  customers*  orders  for  approval  but  make  no  sales  of 
Hardware.     Consider  the  department  as  "Closed  to  take  stock."^ 

REPORT 

Report  of  School  Duties:    I  take  bookkeeping Hours  a  day. 

Hovtrs  worked  since  last  report ,  Absent Total No.  of  Letters  written 

No.  of  Invoices  bo't  of  wholesale  houses Of  students ,   Total 

No.  of  Payments  made  in  cash ;  in  notes ;    in    acceptances ;    Total 

No.  of  Payments  rec'd  in  cash ;   in  notes ;    in    acceptances ;     Total 

No.  of  Sales  made:     To  T.   &   T.  Co ;    to  students ;  Total  No ,  $ 

No.  of  Entries  made Average   per  hour Time  on  trial  balance hours. 


1.  Modern  methods  make  the  closing  of  a  store  or  a  department  a  very  unusual  thing  except  in  case  of 
an  assignment  in  bankruptcy  or  an  attachment.  A  contemplated  change  in  your  firm  that  may  affect  your 
Branch  House  business  is  the  real  reason. 


194 


CAMPBELL'S  ACTUAL  ACCOUNTING 


NOTES                                               1 

CASH 

Bills  Heceivable^  Ledger  Balai 

ace 

Ledger  Balance 

Tn  bank,  Stb.  No,         ,  

In  safe,  Currency 

Total  value  of  notes  in  the  safe. 
Bills  Payable,  Ledger  Balance 
Total  unpaid  in  bill  book 

Tn  Hafft,  Checks, 

Total  Cash  on  hand 

' 

MERCHANDISE 

Department  A 
Goods 

Department  E 
Goods 

TEACHER'S  MARKING 

Cost  of  Mdse.  bought 

Accuracy 

Neatness 

Orderliness 

Records  

3 

2 
2 
2 

1 

Present  inventory 

Cost  of  goods  Bold  

Sales  of  merchandise 

Gain,  red  ink ;  Loss,  black .... 

■  ■ 

Progress 

Errors:  Ourfvr.red;  cont.  black 

Average 

TEACHER'S 


Respectfully  submitted. 


.191. 


STAMP 


145- 


Shipment  Ledger,      i^^i^-:^^^^ /,  .  .. 


191 


2. 


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CREDITS  EXPLANATION 


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CAMPBELL'S  ACTUAL  ACCOUNTING 


195 


146 


146     Special  Co-Partnership. 

THIS  CERTIFICATE   WITNESSETH.  That  the  subscribers  are  desirous  of  forming,  and  have  formed,  a 
special  co-partnership;    that  the  name  under  which  said  co-partnership  Is  to  be  conducted  is  C*     W* 

Burike    &    Company  ,  that  the  general  nature  of  the  business  intended  to  be  trans- 

acted thereby  is  that  of         General  Jobblcg  and  Commission  Business 

that  the  names  of  all  the  co-partucrs  and  the  ntatemcnt  specifying    which    are    general    and    which    are    special 
partners,  and  the  investments  of  each,  are  as  follows:  C»    W«    BllPlCG  and 

H»    F«    Walter  ,  residents  of  UrOWn  County,  State  of       T.     S* 

are  general  partners,  and  they  contribute  to  the  capital  stock  of  the  firm  as  follows,  viz.       C»    W» 

Burke,  Five  Thousand  (5000) --_      Dollars  and 

E.  F»  Walter,  Five  Thousand   (5000) noiiars.  and 

C.    A.    Foley  of  HumhOlt  county,  state  of       Y.    S. 

Is  a  special  co-partner  in  the  co-partnership  of  C»     W»    BurkO    &    Company  and  has 

contributed       TWOUty-five    Hundred     (2500)     -----_--_>     Dollars  to  the 

capital  stock  thereof;   and  will  not  be  responsible  for  the  debts  of  the  firm  beyond  the  amount  of  the  said  in- 
vestment. 

The  active  management  of  the  business  of  this  partnership  Is  to  be  in  the  hands  of  C  •    W»     Burke 

of    College    City  ,  who  is  to  receive  therefor  a  salary  of       On©    Hundred 

Dollars  per  month. 

The  gains  of  the  business,  and  the  losses,  except:  in  case  of  bankruptcy,  are  to  be  shared  ooually.  each 
partner  first  receiving  Interest  on  his  investment  for  the  time  it  is  Invested  at  the  rate  of        SiX  per 

cent,  per  annum,  provided  the  rate  does  not  exceed  the  total  rate  of  gain. 

This  co-partnership  shall  begin  on  the     first  day  of  May  19 and  end  on  the 

thirXietll  day  of  April  19 unless  otherwise  legally  dissolved 

Witness  our  hands  this        first  day  of  ^'^y/T)  /  /  h-/^     ^^ f 

^-^^^^f^^^^^^^pT^  (Seal.) 

State  of  T.  S.,     )  Lg  CA..-X.^^/r^\.^C^<^ TSeal.) 

County  of  Urown,  i   s^"  \  /f^ 

On  this      first  day  of  May  in  the  year  19 ,  before  me    ^Veritas 

SOhelt  ,  a  Notary  Public  in  and  for  the  county  of         ITrOWn 

State  of         T»    S*  ,  duly  commissioned,  qualified  and  active  as  such,  personally  appeared       C»    W» 

Burke,     H.  F.  Walter,         and       C.  A.  Foley  personally 

l<nown  to  me  to  be  the  persons  whose  names  are  subscribed  to  the  within  Instrument,  and  acknowledged  to 
j^"'**.,^  itie  that         they  executed  the  same 

..  .»--^'"''*****X^^^  In  witness  whereof  I  have  hereunto  set  my  name  and  caused  my  ofilcial  seal  to  be 

(Sf  -^^  ^  \^\      affixed  on  the  day  and  year  first  above  written 

^-<CA>^  Notary  Public  in  and  for  UrOWn  County,  State  of       X.     b. 

My  commission  expires  19  ♦ 

State  of  Y.  S.,     ) 
County  of  Urown,  l   ^' 

C*    W»    Burke  being  duly  swom,  deposes  and  says     That    he 

Is  one  of  the  co-partners  In  the  special  co-partnership  of        C*    W»    BurkO    &   Compsny  ^ 

that  the  sums  specified  in  the  certificate  of  co-partnership  filed  herewith  as  having  l)ecn  contributed  by  each  of 

/^^^r*°'piN^  ^^^  special  partneis  have  been  actually  and  in  sood  faith  paid,  in  the  lawful  money  of 

/a^**«**^SV,      t''®  United  States. 

5("y^  O    lol  Subscribed   and   sworn   to  before  me  this    firSt  day  of       May  i^ 

«€^/-^  Notary  Public  in  and  for  UrOWQ  County,  State  of        Y»     S. 

My  commission  expires  191 


196 


147 


CAMPBELL'S  ACTUAL  ACCOUNTING 
CASH  JOURNAL 


ACCOUNT  CREDITED 


EXPLANATION 


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CAMPBELL'S  ACTUAL  ACCOUNTING 
CASH  JOURNAL 


197 


ACCOUNT   DEBITED  EXPLANATION 


CONSIGNMENTS 


SHIP- 
MENTS- 


CREDITORS' LEDGER 


E.  CASH  OR 


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198 


CAMPBELL'S  ACTUAL  ACCOUNTING 


148 


COMMISSION  SALES  BOOK 

COLLEQE    CITY,    May    1,    191 


B-1 


T-X 


L.P. 


10 


Anderson  &  Anderson,  A)bla 

Sale  20,  30d.,  2/10  cash,  l/lO  note  30d.  6  f> 

H  hlf.  ohsts.  Y.  H.  Tea,  2S0  #  at  37  1/2  ^    less  20  f> 

25  bx8.  Butter,  2500  #  at  30  ^ 

25  gross,  l-qt.  Fruit  Jars,  at  ♦U.OO  loss  16  2/3  % 


Park  Grocery  Company,  Beaoonsfield 
Sale  21,  50d.  Sub.  to  draft 
300  lbs.  Armour  S.  C.  Hams,  at  15  4 

500   "    Red  Cross  Sealing  Wax  at  2  ^  less  16  2/3  f> 
30   eks.  Prunes  60-70s  3000  #  at  9  1/2  ^ 


Consignment  Or* 
Dept.  B  Udse.  Cr. 
Mdse.  Cr. 
Aoo^s.  Reoelvable  Dr. 


St 

750 

83 


917 


•♦5 

S 

285 


32 


U^M. 


I1035 

91 

129 


255 


Cons . 
Sales 


750 


285 


1035 


00 


00 


00 


Dept . B 
Udae. 


83 


91 


33 


33 


8«* 


•+5 


00 


00 


66   129 


00 


OUTLINE  V. 


149.  I,  Organize  a  special  co-partnership  for  the  purpose  of  conducting  a  general  shipping 
and  commission  business.  In  this  co-partnership  yourself  and  Mr.  Wemple  will  be  general 
partners  and  you  will  secure  a  student  or  your  teacher  as  a  special  partner,  making  three  in  the 
firm.  Consult  your  teacher  in  regard  to  the  selection  of  the  special  partner.  Then  take  from  your 
envelope  of  Legal  Blanks  the  special  co-partnership  form  and  fill  it  out  in  duplicate,  following  in 
general  form  presented  in  146.  File  one  copy  in  your  filing  case  and  deliver  one  to  your 
teacher. 

2.  The  books  that  you  will  use  while  working  this  outline  will  differ  somewhat  from  those 
used  while  working  Outline  IV,  but  the  same  plan  of  general  and  sub-ledgers  will  be  continued 
The  journal,  however,  will  be  dropped  and  the  cash  book  and  sales  book  will  contain  a  number  of 
additional  columns.  A  shipping  ledger  and  a  consignment  ledger  will  be  additional  books  used  in 
connection  with  this  business.  Study  carefully  the  forms  of  all  these  books  as  presented  in  145, 
146,  147,  and  148.  Use  your  bill  book  as  a  book  of  original  entry  while  working  this  outline  as 
this  will  relieve  your  cash  book  of  practically  all  journal  entries.  To  do  this,  carefully  enter  all 
notes  given  or  received,  directly  in  the  bill  book  and  make  no  entry  in  any  other  book.  Then 
post  from  the  Account  Credited  column  of  bills  receivable  and  the  Account  Charged  column  of 
bills  payable  to  the  ledger,  checking  in  the  L.  F.  column,  but  do  not  post  the  Bills  Receivable 
or  Payable  to  any  account  in  the  ledger.  The  bill  book  becomes  the  ledger  for  all  notes  by  this 
plan.  When  notes  are  collected  or  paid,  post  from  the  cash  journal  to  the  Collection  or  Paid 
columns  of  the  bill  book  the  same  as  to  any  ledger  account,  and  take  the  total  of  unpaid  notes 
in  either  account  to  your  trial  balance.  If  in  beginning  this  work  you  have  a  balance  in  your 
Bills  Receivable  and  Bills  Payable  accounts  in  the  ledger,  balance  them  To  Bill  Book  and  con- 
sider the  bill  book  record  as  taking  their  places  in  the  trial  balance. 

150.  I.  Draft  a  memorandum  for  your  opening  entry,  embodying  such  statements  from  your 
co-partnership  contract  as  you  deem  necessary.  The  lease  drawn  up  at  the  beginning  of  Out- 
line IV  is  still  in  force  and  you  will  pay  according  to  its  terms  while  working  this  outline. 
Make  your  opening  entry  in  your  cash  book,  which  as  it  is  used  in  this  outline  is  usually  termed 
the  Cash  Journal,  following  the  form  shown  in  147. 


CAMPBELL'S  ACTUAL  ACCOUNTING  .  199 

2.  (a)  Pay  rent  as  per  terms  of  the  lease  signed  at  the  beginning  of  preceding  outline. 
Enter  in  cash  book  General  Ledger  column  as  in  preceding  work. 

(b)  Detach  from  Prepared  Blanks  Form  98.  Observe  that  it  is  a  form  of  circular  letter.  Write 
a  number  of  letters  similar  to  this  form  (not  copies  of  it)  adapting  the  statements  to  the  facts 
of  your  own  business  and  send  one  to  each  student  with  whom  you  have  had  any  dealings. 
Consult  your  teacher  also  as  to  whether  it  may  not  be  well  to  send  this  circular  letter  also  to 
other  students  whose  names  he  will  give  you. 

(c)  Write  a  letter  at  this  time  to  U.  R.  Teacher  &  Co.,  College  Center,  informing  them  of 
the  change  you  have  made  in  your  firm  and  of  your  decision  to  engage  in  the  commission  busi- 
ness yourselves,  and  ask  them  to  render  you  on  account  sales  of  the  oranges  recently  shipped  them 
at  the  earliest  possible  date,  as  you  wish  to  close  up  all  the  accounts  of  the  old  business.  Make 
this  letter  a  model  of  neatness  and  business  composition  and  place  it  in  the  envelope  of  papers 
that  go  to  your  teacher  when  your  books  are  submitted.  Your  teacher  will  place  it  on  file  with 
other  specimens  of  your  work. 

3.  Having  decided  that  the  advantage  of  having  your  own  delivery  wagon  is  not  sufficient 
to  justify  the  expense,  you  will  sell  your  delivery  horse  and  wagon  to  the  T.  &  T.  Company  at 
50%  discount  on  cost,  or  to  some  student  who  may  be  wanting  to  buy  such  an  outfit  at  any  dis- 
count from  the  cost  that  may  be  mutually  agreed  upon.  This  will  also  suggest  the  disposing  of 
the  feed  recently  stored  for  the  horse.  See  144,  3.  In  making  entry  for  sale  of  the  horse  and  wagon, 
credit  the  account  that  was  charged  when  they  were  purchased.  For  the  feed,  reverse  the  entry 
made  in  144,  3,  detaching  Form  99,  the  tickets  that  represent  the  unused  feed,  and  placing  them 
again  in  stock  in  the  proper  department. 

4.  (a)  Detach  from  your  Prepared  Blanks  Forms  100  and  loi,  observing  that  Form  100 
consists  of  an  invoice  of  shipment  from  F.  H.  Burns,  Girard,  and  loi  consists  of  the  cartage^  bill 
accompanied  by  tickets  representing  the  goods.  Take  a  page  from  your  pad  of  Accounts  Sales 
sheets  and  copy  thereon  the  items  of  merchandise  received  in  this  consignment,  filling  all  the 
blanks  at  the  head  of  the  sales  sheet,  such  as  Lot  Number,  Invoice  Number,  When  Received  and 
Date  of  Invoice.  The  lot  number  will  be  consecutive  with  the  number  of  the  last  consignment 
handled  in  Outline  IV,  and  should  be  followed  as  usual  with  the  name  of  the  shipper  for  reference. 
Antedate  the  shipping  invoice  to  allow  sufficient  time  for  arrival,  but  give  the  cartage  bill  the  pres- 
ent date,  writing  your  own  name  in  the  forms  wherever  necessary.    Pay  the  cartage  and  freight 

bills,  charging  to  Consignment  No.  ^,  entering  the  amount  on  the  sales  sheet,  on  the   lines 

marked  Freight  and  Cartage.    Mark  entry  also  in  your  cash  book  in  the  column  designated.   Cash 

Payments,  with  the  explanation  Consignment  No. ,^  freight.     Place  the  date  of  the  transaction 

in  the  date  column  and  the  check-mark  ( v^)  in  the  posting  column  as  the  record  which  you  have 
just  made  on  the  sales  sheet  is  equivalent  to  the  posting  of  this  item.  Detach  from  the  cartage 
bill  the  tickets  representing  the  goods  and  mark  in  ink  on  each  ticket  the  lot  number,  either  on 
face  or  back  of  ticket  as  you  see  fit,  but  distinctly  and  without  defacing  the  Mdse.  memoranda  as 
all  of  this,  including  the  lot  number,  will  be  needed  for  your  information  when  making  sales.  Place 
these  goods  in  a  separate  envelope  marked  Consignment  Goods.  Attach  the  cartage  bill  to  the 
shipment  invoice  and  file  it  as  you  filed  such  invoices  while  working  Outline  IV. 

(b)  The  student  will  observe  that  the  plan  of  keeping  accounts  with  consignments  has 
been  radically  changed  from  the  ledger  accounts  used  in  the  preceding  Outline.  If  all  consign- 
ments received  in  Outline  IV  were  settled  and  closed  before  closing  the  books  at  the  end  of  the 
outline  there  will  be  no  trouble  in  your  bookkeeping  on  account  of  the  change.     But  if  some  of 

1.  Having  disposed  of  your  own  delivery  wagon  and  horse,  3'^ou  will  hereafter  employ  a  carting  com- 
pany to  bring  your  goods  from  the  freight  office,  and  this  company  will  pay  the  freight  charges  and  include  in 
the  bill.  In  business  they  would  hand  you  also  the  receipted  bill  of  the  R.  R.  Co.  as  illustrated  in  106,  14,  (c). 
See  also  109,  5,  where  the  cartage  bill  does  not  appear  because  you  have  your  own  cartage  outfit. 

2.  Fill  this  blank  with  the  lot  number  which  is  the  next  number  in  consecutive  order,  following  the  last 
consignment  already  received. 


200  CAMPBELL'S  ACTUAL  ACCOUNTING 

these  consignments  have  not  been  closed,  it  will  be  desirable  to  transfer  them  from  your  General 
ledger  to  your  consignment  ledger,  that  is  made  up  of  Account  Sales  Sheets.  To  do  this,  take 
an  Account  Sales  Sheet  for  each  consignment  that  remains  unclosed  in  the  ledger  and  copy 
thereon  all  the  items  already  posted  to  the  ledger,  giving  this  consignment  sales  sheet  the  lot  num- 
ber indicated  in  the  ledger.  Then  close  this  consignment  in  the  ledger  by  a  red  ink  transfer  entry, 
carrying  the  balance  to  a  general  Consignments  account  which  you  will  now  open  on  page  25 
of  your  ledger.     Index  this  account  before  proceeding. 

5.  Detach  from  Prepared  Blanks  102,  103,  104,  105,  106,  107,  108  and  109.  Observe  that  these 
consist  of  four  additional  invoices  of  shipments  with  cartage  bills  and  merchandise  similar  to  100 
and  loi  received  in  4  above.  Detach  an  additional  sales  sheet  from  your  pad  for  each  one  of  the 
above  invoices  and  proceed  to  make  a  record  of  the  goods  received  and  to  pay  and  make  entry  for 
the  freight  or  cartage  items  as  instructed  in  4  above.  Insert  these  sales  sheets  in  your  loose-leaf 
ledger  just  following  the  title  page  Consignment  Ledger. 

6.  Fill  orders  approved  by  your  teacher  at  last  closing,  accompanying  one  bill  with  a  draft 
at  30  days  for  acceptance  and  one  with  a  note  payable  on  demand.  In  writing  out  the  draft  and 
note,  remember  to  deduct  the  I  %  from  the  face  of  the  bills.  Make  entry  in  sales  book  as  in 
previous  work.     Sell  Dep't.  E  goods  to  T.  &  T.  Co.  as  formerly. 

7.  Enter  all  invoices  received  since  last  closing  by  pasting  them  in  your  invoice  book  (after 
checking  carefully)  and  extend  the  amounts  into  the  Merchandise  column  directly  opposite  the 
name  of  the  seller  so  that  in  posting  you  will  not  need  to  lift  the  loose  part  of  the  bill  to  see  to 
what  bill  the  item  belongs. 

8.  Pay  for  invoices  received  as  follows : 

(a)  Sign  notes  or  accept  drafts  when  they  accompany  the  invoices,  making  the  entry  in  your 
cash  book,  first  on  the  credit  side  exactly  as  in  cash  payments  in  Outline  IV,  placing  the  discount, 
if  any,  in  the  Discount  column  and  the  amount  of  the  note  or  acceptance  in  the  column  designated 
as  Cash  or  Note.  This  charges  the  person  paid ;  explain  as  usual.  Then  on  the  opposite  side  of  the 
cash  book  make  an  entry  in  the  Sundries  column,  crediting  Bills  Payable  for  the  face  of  the  note 
or  acceptance,  and  explaining  as  in  any  journal  entry. 

(b)  Pay  for  one  or  two  bills  by  drafts  at  30  days  on  some  of  your  customers  who  are  in- 
debted to  you;  and  for  one  or  two  by  sight  draft  on  persons  who  owe  you.  Observe  that  in 
the  case  of  a  30-day  draft  your  Mdse  Disct.  is  1%  and  in  case  of  a  sight  draft,  2%,  the  latter 
being  equivalent  to  cash  to  your  creditor,  and  that  the  entry  on  your  own  books  is  the  same  in 
either  case.  Make  entry  for  these  payments  also  in  the  cash  book,  first  charging  the  person  paid, 
on  the  credit  side  of  the  book  as  instructed  in  (a)  above,  and  then  crediting  the  person  drawn  on, 
on  the  debit  side  of  the  book  in  the  Cash  or  Note  column.  Usually  there  will  be  no  discount 
connected  with  this  part  of  the  entry,  but  if  there  is,  it  will  go  in  the  discount  column  as  usual. 
Pay  for  one  or  two  remaining  invoices  in  cash  less  the  customary  discount  and  make  entry  on  the 
credit  side  of  your  cash  book  in  the  Customers'  Ledger  column,  as  in  former  work. 

(c)  Pay  all  acceptances  or  notes  which  you  owe  that  have  matured;  making  entry  on  the 
credit  side  of  your  cash  book.  Sundries  column,  as  in  former  work. 

9.  Make  entry  for  payments  received. 

(a)  In  entering  payments  on  account  of  bills  sold,  make  entry  for  notes  or  acceptances 
received  just  as  instructed  in  previous  work  for  cash  received,  on  the  debit  side  of  your  cash 
book  in  the  Customers'  Ledger  columns  and  then  make  an  entry  on  the  opposite  side  of  the  cash 
book  crediting  Bills  Receivable  in  the  Sundries  columns.  See  7  above.  Cash  payments  are  en- 
tered as  in  former  work. 

(b)  In  entering  payments  received  for  notes  or  acceptances  enter  in  cash  book.  General 
Ledger  column  debit  side,   using  one  line  for  the  face  of  the  note  or  acceptance  paid  and  one  line 

or  the  amount  of  interest,  as  in  former  work. 


CAMPBELL'S  ACTUAL  ACCOUNTING  201 

10.  Remit  to  your  wholesale  houses  for  invoices  last  received,  taking  advantage  of  the  cash 
discounts,  and  place  new  orders  for  merchandise  with  at  least  three  companies,  making  these 
orders  as  large  as  you  will  be  able  to  pay  for  but  within  the  "limit"  prescribed  in  your  price  list. 

11.  If  the  circular  letter  sent  out,  as  instructed  in  2,  has  not  brought  you  at  least  5  consign- 
ments of  merchandise  from  students  in  the  room,  consult  your  teacher  as  to  the  best  means  of 
securing  these  that  they  may  be  on  hand  for  your  next  day's  work.  If  they  have  come  in,  make 
entry  for  them  as  instructed  in  4  preceding. 

12.  Detach  from  Prepared  Blanks  Form  no,  a  letter  from  the  Van  Camp  Hardware  Com- 
pany and  reply  to  it  assuring  them  that  in  the  enlargement  of  your  business,  you  in  nowise  con- 
templated curtailing  your  efforts  in  the  hardware  branch,  but  that  you  expected  through  the 
wider  patronage  secured  to  be  able  to  increase  hardware  sales  very  materially. 

State  that  you  are,  however,  through  your  increased  capital,  in  a  position  to  handle  the  hard- 
ware department  as  your  own  goods ;  that  you  are  very  glad  to  accept  their  proposition  and  that 
you  enclose  your  check  in  full  for  the  stock  of  goods  as  inventoried  with  an  order  for  additional 
goods  which  you  hope  will  have  their  prompt  attention  and  an  early  shipment.  Enclose  with  this 
letter  an  order  on  one  of  your  own  blanks  duplicating  their  first  invoice. 

13.  Secure  orders  for  next  day's  trading. 

(a)  If  requests  for  shipments  (consignment  of  goods  to  be  sold  on  commission)  have  not 
been  received  from  at  least  five  students,  make  up  five  invoices  of  shipments  of  goods  taken  from 
department  A  (do  not  make  shipments  of  department  B  or  E  goods)  omitting  the  names  of  the 
consignees,  and  submit  them  to  your  teacher  with  your  books  as  you  do  your  sales  orders, 
requesting  him  to  inform  you  as  to  who  will  handle  the  goods. 

(b)  Prepare  at  least  five  regular  sales  orders  for  regular  customers,  including  in  each  one 
some  of  your  own  merchandise,  and  a  part  of  at  least  two  consignments.  So  arrange  these  sales 
that  the  goods  of  at  least  one  consignment,  the  one  from  F.  H.  Burns,  detached  form  99,  will  be 
entirely  sold  out.  Prepare  one  additional  sales  order  in  which  you  make  sale  of  part  of  two  con- 
signments, some  of  your  own  merchandise,  and  some  of  the  hardware  or  branch  house  merchandise. 

14.  (a)  Prove  and  rule  cash.  This  work  will  be  very  similar  to  the  closing  of  your  cash  book 
in  Outline  IV.  Observe  that  the  cash  items  of  the  debit  side  will  be  found  in  the  Cash  and  Note 
column  of  the  customers'  ledger,  the  Shipment  column  and  the  General  Ledger  column,  and  those 
of  the  credit  side  in  Cash  Payments,  Shipments,  Cash  or  Note,  and  General  Ledger  columns. 
While  some  of  these  columns  include  items  that  are  not  cash  (see  150,  8,  a),  each  of  these 
appears  on  both  sides  on  the  book  so  that  the  correct  balance  of  the  cash  is  not  thereby  disturbed. 
Add  all  columns  in  pencil  and  prove  your  cash  as  in  former  work  before  drawing  any  ruled  lines. 
Then  enter  the  footings  in  black  ink  as  shown  in  the  form  in  146  beneath  the  addition  lines  and 
add  horizontally  (when  necessary)  to  obtain  the  total  that  goes  to  any  General  Ledger  account, 
as  Accounts  Receivable,  Accounts  Payable,  or  Consignments,  making  entry  for  the  footings  of 
the  ruled  columns  as  follows, — on  the  debit  side  of  the  cash  book  credit  Accounts  Receivable  for 
the  total  of  the  Cash  or  Note  and  Mdse.  Disct.  columns,  and  credit  Shipment  for  the  total  of  the 
Shipment  column,  extending  both  these  amounts  into  the  General  Ledger  column.  On  the  credit 
side  of  the  cash  book  charge  Consignments  for  the  total  of  all  columns  included  under  the  heading 
Consignment  Ledger,  adding  horizontally  as  in  the  closing  in  147,  and  carrying  the  amount  into 
the  General  Ledger  column.  In  the  same  manner  charge  Accounts  Payable  with  the  total  of  the 
Cash  and  Note  and  Merchandise  Discount  columns,  and  Shipments  for  the  total  of  the  Shipment 
column,  carrying  these  amounts  also  into  the  General  Ledger  column.  Then  make  entry  for  the 
journal  columns  very  much  as  you  did  in  former  work.  The  footing  of  Merchandise  Dis- 
count debit  found  on  the  debit  side  of  the  cash  book  is  brought  over  to  the  credit  side  and, 
diminished^  by  the  footing  of  the  Cash  Discount  Consignment  column,  is  entered  to  the  debit  of 
Merchandise  Discount  on  the  credit  side  of  the  cash   book   in   the   General    Ledger   column.     The 


1.     This  subtraction  stiould  sliow  in  the  closing  of  the  cash  book. 


202  CAMPBELL'S  ACTUAL  ACCOUNTING 

Merchandise  Discount  found  under  the  title  of  Creditors'  Ledger,  is  credited  to  Merchandise  Dis- 
count on  the  debit  side  of  the  cash  book  in  the  General  Ledger  column.  The  other  journal  col- 
umns, as  Commission,  will  be  credited  to  accounts  designated  by  the  headings  of  the  columns, 
making  entry  on  the  debit  side  of  the  cash  book  in  General  Ledger  column.  If  these  entries  and 
contra  entries  are  correctly  made,  the  cash  balance  is  not  disturbed.  When  it  proves,  enter  the 
cash  balance  as  in  former  work.  Complete  the  closing  and  bring  down  the  balance  below  the 
closing  lines. 

(b)  Make  bank  deposit. 

(c)  Post  all  entries.  Your  posting  from  the  cash  book  will  be  very  similar  to  that  in  former 
work.  You  will  observe,  however,  that  shipment  items  on  both  sides  of  the  cash  are,  or  should 
be,  check-marked  if  the  items  have  already  been  entered  in  the  shipment  ledger;  if  not,  proceed 
to  enter  and  check  as  shown  by  the  form  in  147.  Observe  also,  that  all  items  included  under  the 
Consignment  Ledger  heading  are,  or  should  be,  checked  in  the  L.  F.  column  of  the  cash  book,  as 
these  items  should  already  appear  on  the  pages  of  your  consignment  ledger.  Other  items,  post  as 
in  Outline  IV. 

The  posting  of  your  invoice  book  is  so  similar  to  Outline  IV  as  to  need  no  further  instruc- 
tions. 

In  posting  from  your  sales  book  the  principal  difference  will  lie  in  the  advantage  you  now 
have  in  using  a  separate  column  for  each  separate  class  of  goods.  Observe  how  the  column  foot- 
ings are  posted  in  the  form  in  148.  The  customer's  debit  is  of  course  posted  the  same  as  in 
former  work.  The  separate  credits  of  each  consignment  (designated  by  lot  number)  are  to  be 
posted  to  the  sales  sheet  of  that  consignment  in  the  consignment  ledger  in  the  credit  column 
marked  Sales  with  full  explanation  of  each  item  and  date  of  sale,  instead  of  being  posted  to  an 
account  in  the  general  ledger.       See  106,  21,  and  Form  on  page  128. 

The  shipping  ledger  requires  no  posting  except  for  the  total  of  Mdse.  Column  and  it  may  or 
may  not  be  posted  for  the  purpose  of  the  daily  closing,  as  you  see  fit,  but  must  be  posted  in 
the  general  closing  of  the  books,  and  you  may  post  it  at  this  time  as  a  matter  of  practice.  Posting 
in  the  shipping  ledger  consists  merely  in  ruling  and  adding  the  Merchandise  column  and,  at  the 
foot  of  it,  making  the  journal  entry,  Shipments  To  Merchandise,  and  posting  to  the  Shipments 
and  Merchandise  accounts  in  the  general  ledger.  A  careful  study  of  the  forms  of  the  books 
presented  in  145  and  147  should  make  further  instructions  entirely  unnecessary. 

(d)  Prove  Bills  Receivable  and  Payable. 

(e)  Take  an  abstract  of  your  sub-ledgers  and  prove  and  rule  Accounts  Receivable  and  Pay- 
able. 

(f)  Take  an  abstract  of  your  consignment  ledger  (Account  Sales  Sheets)  and  prove  its 
agreement  with  the  Consignments  account  in  the  general  ledger. 

(g)  Prove  the  agreement  of  your  shipping  ledger  (the  total  cost  and  credit  columns) 
with  the  Shipments  account  in  your  general  ledger.  Take  a  special  page  of  your  trial  balance 
book  on  which  to  record  these  proofs. 

(f)     Take  a  trial  balance  of  the  general  ledger. 

15.  Submit  your  books  to  your  teacher  for  approval,  arranged  as  instructed  in  98  with  your 
prepared  shipping  invoices  and  customers'  orders  and  with  a  duplicate  copy  of  your  daily  report 
copied  neatly  in  the  form  following : 

REPORT 

"Report  of  School  Duties:    I  take  bookkeeping Hours  a  day. 

Hours  worked  since  last  report ,  Absent Total No.  of  Letters  written 

No.  of  Invoices  bo't  of  wholesale  houses Of  students ,   Total 

No.  of  Payments  made  in  cash ;   in  notes ;    in    acceptances ;     Total 

No.  of  Payments  rec'd  in  cash ;   in  notes ;    in    acceptances ;     Total 

No.  of  Sales  made:     To  T.   &   T.  Co ;   to  students ;  Total  No ,  $ 

No.  of  Entries  made Average   per  hour Time  on  trial  balance hours. 


CAMPBELL'S  ACTUAL  ACCOUNTING 


203 


NOTES 


Bills  Receivable,  Ledger  Balance 

Total  uncollected  in  bill  book , 

Total  value  of  notes  in  the  safe . 

Bills  Payable,  Ledger  Balance 

Total  unpaid  in  bill  book 


CASH 


Ledger  Balance 

In  bank,  Stb.  No.. 
In  safe,  Currency 
In  safe.  Checks,  _ 


Total  Cash  on  hand. 


TEACHER'S 


Respectfully  submitted, 


. 191 ... . 


STAMP 


151.  I.  (a)  Your  first  business  in  this  day's  work  will  be  to  send  out  shipments  of  goods 
to  be  sold  on  commission  to  the  persons  indicated  by  your  teacher  when  your  books  were 
approved.  But  before  doing  this,  it  will  be  necessary  to  close  the  shipment  accounts  kept  in  your 
ledger  while  working  Outline  IV  and  transfer  them  to  the  shipping  ledger,  which  is  the  plan  of 
keeping  shipment  accounts  in  the  work  of  this  Outline.  Turn  to  your  accounts  with  shipments  in 
the  general  ledger  and  copy  into  your  shipping  ledger  all  the  items  of  each  inclosed  shipment, 
making  the  record  in  the  shipping  ledger  as  nearly  like  the  record  shown  in  the  form  in  147  as 
possible.  Rule  and  foot  the  merchandise  column  and  post-check  the  total,  since  these  shipments 
have  all  been  closed  out  of  merchandise.  Then  in  your  ledger,  balance  each  one  of  the  former 
shipment  accounts  (which  you  have  just  transferred  to  shipping  ledger)  with  red  ink,  and 
transfer  the  balance  to  a  general  accovmt  with  Shipments  on  the  page  following  the  account  which 
you  opened  with  Consignments  as  instructed  in  150,  4  (b). 

(b)  Now  proceed  to  send  out  shipments  of  goods  to  be  sold  on  commission  to  the  persons 
indicated  by  your  teacher  when  the  books  were  approved.  First  make  entry  of  the  items  and  cost 
amounts  of  each  separate  shipment  in  the  shipping  ledger  as  shown  in  the  form  in  145.  Pay  to 
your  teacher  (or  at  the  insurance  office)  insurance  on  each  of  these  shipments  at  i/^  %  on  the  cost 
value.  Enter  in  your  cash  book,  credit  side.  Shipment  column.  Transfer  this  amount  immedi- 
atelyi  to  the  shipping  ledger,  placing  it  on  the  debit  side  beneath  the  cost  items  of  the  shipment 
with  the  explanation  Insurance  and  check  the  entry  in  the  cash  book  in  the  L.  F.  column,  as 
in  the  form  in  the  cash  book  in  146. 

2.  Fill  orders  approved  by  your  teacher  at  last  closing,  making  the  entries  in  your  sales 
book  and  being  careful  to  follow  the  forms  presented  in  148.  In  the  billing  work  of  this  out- 
line, it  will  be  necessary  that  the  items  of  each  separate  consignment,  also  of  your  own  merchan- 
dise and  of  hardware,  should  be  discounted  separately,  and  you  must  remember  that  hardware 
sold  at  3%  ofif  is  extended  in  the  sales  book,  into  a  column  separate  from  that  discounted 
162/3%.  See  Illustrative  sales  in  148.  Your  ownership  of  the  stock  will  not  release  you  from 
keeping  it  in  a  separate  department. 

3.  Enter  all  invoices  of  merchandise  (not  invoices  of  shipment)  receiv^ed  since  last  closing, 
by  pasting  them  into  your  invoice  book  after  checking  them  carefully  and  extend  the  amounts 
into  the  merchandise  column  opposite  the  name  of  seller  as  usual. 

4.  Render  account  sales  of  all  consignments  that  were  closed  out  as  instructed  in 
150*  13  (t>).     To  know  whether  a  consignment  is  closed  out  or  not  it  is  not  necessary  that  you 


1.  It  may  not  always  be  convenient  and  need  not  be  considered  necessary  to  transfer  this  item  imme- 
diately to  the  shipping  ledger.  When  the  student  is  familiar  with  his  work  this  can  be  done  at  the  same  time 
as  the  regular  posting.  In  the  heginning  of  his  practice  in  this  set  of  books,  it  is  best,  however,  that  this  trans- 
fer be  attended  to  while  the  matter  is  directly  in  hand. 


204  CAMPBELL'S  ACTUAL  ACCOUNTING 

should  look  through  your  warehouse  (envelope  of  goods)  to  see  whether  any  of  the  goods  of  that 
lot  remain  in  stock,  but  you  should  be  able  to  tell  from  the  sales  sheet  of  each  consignment  in  the 
consignment  ledger  exactly  when  the  entire  lot  is  sold  out.  To  do  this,  observe,  first,  that  a 
record  of  the  quantity  and  kind  of  goods  received  appears  at  the  top  of  each  sheet  and  that  an 
itemized  list  of  the  quantities  and  kinds  of  goods  sold  is  shown  in  the  sales  column  on  each  sheet. 
Carefully  add  together  the  quantities  of  the  goods  sold  and  when  it  equals  the  quantity  of  the 
goods  received,  it  indicates  that  the  consignment  is  entirely  sold  out  and  that  you  are  ready  to 
render  an  account  sales.  The  next  step  is  to  take  from  your  pad  of  Account  Sales  Sheets  a 
duplicate  blank  and  copy  thereon  all  the  items,  receipts,  sales,  charges,  etc.,  appearing  in  the  con- 
signment account  in  the  consignment  ledger.  Then  proceed  to  enter  on  this  duplicate  sheet, 
commission  at  2%  on  sales,  and  on  the  line  next  following,  guaranty  at  1%  of  all  time  sales  not 
collected.  Balance  and  close  the  account  as  indicated  at  this  point  to  show  the  net  proceeds  as 
all  charges  strictly  incident  to  commission  sales  are  already  entered.  Bring  down  the  net  proceeds 
as  a  balance  below  the  closing  lines.  The  next  item  in  the  charges  column  is,  as  you  will 
observe,  advances  already  paid  and  charged.  Next  below  this  you  will  compute  and  enter  interest 
on  all  advance  payments  made  on  account  of  this  consignment  whether  for  drafts  or  freight, 
from  the  time  made  to  the  present  date,  and  on  all  time  sales  from  the  present  date  to  the  date  of 
maturity  of  the  sale.^  Deducting  these  additional  charges  from  the  net  proceeds  brought  down 
as  above,  you  have  the  amount  of  remittance,  if  made  by  check,  from  which  exchange  at  regular 
bank  rate  will  be  deducted  to  show  the  face  of  the  draft  if  remittance  is  to  be  made  in  that 
manner.  Turn  to  your  cash  book,  and  on  the  first  blank  line  on  the  credit  side  charge  to  the 
consignment  designated  by  its  lot  number,  the  items  just  entered  on  your  duplicate  sales  sheet, 
namely,  commission  in  the  Commission  column,  storage  at  ic  per  week  per  unit  (barrel,  case  or 
crate,  etc.,),  guaranty  and  interest  in  Sundry  Charges  column  and  the  remittance  in  the  Cash  Pay- 
ments column.  If  the  remittance  be  made  by  draft,  the  cost  of  exchange  being  also  paid  in  cash, 
the  same  amount  goes  into  the  remittance  column  though  it  is  separated  in  the  entry  on  the  Sales 
Sheet.2  Post  these  items  from  the  cash  book  to  the  consignment  ledger,  making  the  consignor's 
account  exactly  like  the  duplicate  sheet  on  which  you  have  been  making  entries  and  from  which 
you  took  the  cash  book  entry.  If  this  posting  exactly  balances  and  closes  the  consignment 
account  in  the  ledger,  your  consignment  is  closed  and  you  may  draw  your  check  for  the  amount 
of  the  remittance,  or  may  purchase  your  draft  at  the  bank  and  enclose  it  with  the  duplicate  sales 
sheet  to  the  consignor.  Observe  that  as  all  cash  payments  are  placed  in  one  column  in  the  cash 
book,  there  will  be  no  difference  in  the  entry  whether  payment  be  made  by  check  or  by  bank 
draft.  Enter  the  present  date  in  the  date  line  at  the  head  of  the  Account  Sales  Sheets,  both  the 
duplicate  and  the  one  retained  in  the  ledger. 

5.  Detach  from  your  Prepared  Blanks  Forms  iii  (a)  and  (b),  the  letter  of  U.  R.  Teacher 
&  Co.  in  reply  to  your  letter  written  as  instructed  in  150,  2  (c),  together  with  the  account  sales  of 
your  shipment  of  oranges.  Reply  to  the  letter  enclosing  shipping  receipt  for  1,000  lbs.  of  prunes 
and  500  lbs.  of  pears  and  instruct  the  consignee  to  charge  the  deficit  on  the  orange  shipment 
against  this  one.  Draw  a  draft  at  thirty  days  on  this  shipment  for  its  cost  value  less  the  deficit 
on  the  shipment  of  oranges  and  discount  the  draft  at  the  bank  assigning  the  original^  B/L  as 
security.  In  making  entry  for  this  shipment  remember  that  it  will  be  known  as  "U.  R.  Teacher, 
Shipment  2,"  the  orange  shipment  having  been  designated  as  "U.  R.  Teacher,  Shipment  i."  Credit 
this  shipment  on  the  debit  side  of  the  cash  book  with  both  the  deficit  on  the  orange  shipment, 
and  with  the  $90-draft,  placing  the  figures  in  the  Shipments  column.    Then  on  the  credit  side  of 

1.  These  charges  cover  all  the  interest  to  which  the  consignee  is  any  way  entitled.  In  many  instances 
the  consignee  elects  not  to  charge  interest  except  on  advances,  and  when  the  time  is  short  not  even  on  that 
item,  preferring  to  give  his  customer  the  advantage  of  interest  and  to  charge  a  higher  commission. 

2.  If  it  is  desired  to  reserve  the  Cash  Payment  column  for  payments  on  account  of  Net  Proceeds  alone  the 
sundry  charges  column  can  be  labeled  Cash  charges  and  used  for  Freight,  Cartage,  Exchange,  Insurance  and 
all  expense  paid  in  cash,  an  additional  column  being  used  for  the  charges  now  assigned  as  Sundry.  Storage 
is  often  included  in  the  sundry  group. 

3.  To  accompany  draft,  use  special  form.  Order  Bill  of  Lading.    See  Form  54,  in  106,  14,  (b). 


CAMPBELL'S  ACTUAL  ACCOUNTING  205 

the  cash  book  charge  Interest  and  Discount  in  the  General  Ledger  column  for  the  discount  on 
the  draft  and  U.  R.  Teacher's  Shipment  No.  i  in  the  Shipment  column  for  the  deficit  on  the 
orange  shipment. 

This  would  end  the  entries,  but,  as  you  will  remember,  this  shipment  of  oranges  was  a  part  of 
the  resources  of  yourself  and  Mr.  Wemple  when  you  took  in  your  partner  for  this  commission 
business  and  you  two  should  bear  the  entire  loss.  To  adjust  this,  turn  to  your  shipping  ledger 
(you  were  instructed  in  151,  i  (a),  to  copy  all  items  of  unclosed  shipments  into  this  ledger)  and 
adding  to  the  debit  of  that  shipment  as  it  appears  in  the  ledger  the  deficit  just  now  charged 
against  it,  divide  the  amount  into  two  equal  parts  and  make  entry,  first  on  the  credit  side  of  the 
cash  book,  charging  one-half  each  to  the  private  accounts  of  Mr.  Wemple  and  yourself  on  separate 
lines  in  the  General  Ledger  column.  Then  on  the  opposite  side  of  the  cash  book  credit  U.  R. 
Teacher  Shipment  No.  i  in  the  Shipments  column  for  the  total  that  has  been  charged  to  the  two 
partners.  File  the  account  sales  in  your  filing  case  and  place  invoice  of  Shipment  No.  2  and  your 
letter  in  the  envelope  of  papers  that  are  to  go  to  your  teacher  with  your  books. 

6.  Detach  forms  112,  113,  114,  115,  116,  and  117.  Observe  that  you  have  three  additional 
invoices  of  shipments  with  the  cartage  bills  and  goods.  Detach  a  page  from  your  pad  of  sales 
sheets  for  each  one  of  these  shipments  and  proceed  to  make  entries  as  instructed  in  150,  4. 

7.  If  you  have  received  any  invoices  of  shipments  from  students,  proceed  to  make  entry  for 
them  exactly  as  for  the  detached  forms  in  6.  If  no  shipments  have  as  yet  come  in,  consult  your 
teacher  as  to  securing  them  for  without  his  permission  you  must  not  close  this  day's  work  until 
you  have  received  and  entered  between  5  and  10  incoming  shipments  of  merchandise  for  com- 
mission sales. 

8.  Pay  for  invoices  received  and  make  entry  as  instructed  in  150,  8  (a  and  b).  Pay  all 
matured  paper  that  you  owe  and  make  entry  as  150,  8  (c). 

9.  Make  entry  for  payments  received,  whether  on  account  of  invoices  or  for  notes  and 
acceptances.  Follow  instructions  in  150,  9  (a  and  b).  Remit  to  wholesale  house  in  full  for  all 
invoices  that  have  matured  and  place  orders  with  at  least  three  houses  for  additional  merchan- 
dise. Make  daily  closing,  proving  consignment  ledger  and  shipping  ledger  and  proving  and  ruling 
your  Accounts  Payable  and  Receivable  before  taking  your  trial  balance.    See  order  in  150,  14. 

10.  (a)  Secure  usual  customers'  orders  for  next  day's  trading,  mixing  these  orders  (as 
would  naturally  occur  in  many  orders  in  business)  so  that  each  will  contain  parts  of  more  than 
one  consignment  and  either  some  of  your  own  merchandise  or  some  of  your  branch  house  mer- 
chandise or  both.  If  possible  sell  out  one  or  two  consignments  entire,  but  not  all  to  one  cus- 
tomer. 

(b)  Prepare  also  five  invoices  of  shipments  out  of  goods  taken  from  your  merchandise, 
but  not  Department  E. 

(c)  Submit  these  customers'  orders  and  proposed  shipments  to  your  teacher,  who  will 
suggest  buyers  and  consignees  as  usual,  presenting  at  this  time  your  books  arranged  in  the  usual 
form  for  his  examination  and  approval,  accompanied  with  a  duplicate  copy  of  your  daily  report 
first  neatly  copied  into  the  form  below. 

152.  I.  Render  account  sales  of  all  consignments  that  are  sold  out  and  make  entry  accord- 
ing to  previous  instructions. 

REPORT 

Report  of  School  Duties:    I  take  bookkeeping Hours  a  day. 

Hours  worked  since  last  report ,  Absent Total No.  of  Letters  written „ 

No.  of  Invoices  bo't  of  wholesale  houses Of  students ,  Total 

No.  of  Payments  made  in  cash ;   in  notes ;    in    acceptances ;    Total 

No.  of  Payments  rec'd  in  cash ;   in  notes ;    in    acceptances ;     Total „ 

No.  of  Sales  made:     To  T.   &  T.  Co ;    to  students ;  Total  No $ „ 

No.  of  Entries  made Average  per  hour Time  on  trial  balance hours. 


2o6 


CAMPBELL'S  ACTUAL  ACCOUNTING 


NOTES 

CASH 

Bills  Receivable,  Ledger  Balance 

Ledger  Balance 

Total  uncollected  in  bill  book 

In  bank,  Stb.  No.          ,  

In  safe,  Currency 

In  safe,  Checks, 

Bills  Payable,  Ledger  Balance 

Total  unpaid  in  bill  book 

Total  Caeh  on  hand 

Respectfully  submitted, 


TEACHER'S 


,191.... 


STAMP 


2.  (a)  Send  out  today's  shipments,  making  out  bills  of  lading  carefully  and  pay  insurance 
at  the  usual  rate. 

(b)  Bill  sales  orders  approved  by  your  teacher  and  enter  in  your  sales  book,  being  careful  both 
in  the  invoice  and  in  the  sales  book  to  compute  discount  separately  on  items  belonging  to 
separate  departments,  as  consignments  and  hardware. 

3.  Check  and  enter  all  invoices  received. 

4.  Make  payment  for  invoices,  by  cash,  note,  or  draft  as  you  see  fit,  except  when  otherwise 
required  by  your  creditors. 

5.  Make  entry  for  all  payments  received  whether  they  be  payments  on  account,  or  pay- 
ments of  notes  or  acceptances,  noting  carefully  this  difference  in  entering,  that  payments  of 
accounts  will  be  extended  into  the  Customers'  Ledger  columns  with  the  merchandise  discount  in 
the  Discount  column  and  that  payments  of  notes  or  acceptances  will  be  extended  into  the 
General  Ledger  column  with  their  interest  entered  on  the  second  line  in  the  same  column,  or  their 
discount  (if  they  be  discounted)  entered  on  the  opposite  page  of  the  cash  book  and  extended  into 
the  General  Ledger  column. 

6.  Make  payment  for  all  notes  and  acceptances  that  have  matured,  entering  in  the  cash 
book.  General  Ledger  column.  For  the  largest  one  of  these  notes  or  acceptances,  do  not  pay  cash 
in  full  but  draw  your  check  for  about  60%  of  the  note  and  interest,  and  for  the  balance  give  a 
new  note  with  an  endorser,  that  is,  get  some  one  to  write  his  name  on  the  back  of  the  note. 

7.  Make  a  payment  of  some  note  that  is  not  matured,  securing  the  discount.  Observe  that 
in  making  the  entry,  the  face  of  this  note  will  go  in  the  General  Ledger  column  on  the  credit 
side  of  the  cash  book  and  that  the  discount  will  not  go  into  any  discount  column  but  will  be 
credited  to  Interest  and  Discount  and  entered  in  the  General  Ledger  column  on  the  opposite 
page  of  the  cash  book,  the  difference  between  the  two  entries  being  the  amount  of  the  payment. 

8.  Detach  from  your  prepared  blanks  Form  118  and  reply  quoting  coffee  at  15  to  i8c  less 
trade  discount.  Reply  by  Western  Union  Telegraph  paying  at  the  rate  of  37c  per  word^  at  the 
telegraph  office  or  at  the  teacher's  desk.  File  this  form  (which  you  observe  consists  of  a  letter 
and  a  bill  of  lading  enclosed)  in  your  letter  file.  Then  detach  Form  119,  which  you  will 
observe  consists  of  tickets  representing  the  coffee  consignment,  accompanied  by  the  cartage 
company's  bill  for  cartage  and  freight  advanced.  Pay  the  bill  making  entry  as  usual,  and  open  the 
usual  account  with  the  consignment. 

9.  Detach  from  your  prepared  blanks  Forms  120,  121,  122,  123,  observing  that  they  consist  of 
a  letter  with  three  enclosures  from  U.  R.  Teacher  &  Company.  Fasten  the  account  sales  and 
statement  together  and  file  with  other  account  sales.     File  the  letter  as  usual.     Place  the  draft 

1.    Better  use  the  exact  rate  from  your  city  to  this  point. 


CAMPBELL'S  ACTUAL  ACCOUNTING 


207 


in  your  cash  drawer  and  make  entry  on  the  debit  side  of  the  cash  book  in  the  shipment  column 
for  the  net  proceeds  of  the  account  sales,  less  the  $4.91  deficit  on  the  orange  shipment  and  the 
$90  draft,  both  of  which  have  been  entered  in  151,  5.  Then  on  the  opposite  side  of  the  cash  book 
charge  to  Interest  &  Discount  the  $1.35  and  the  entry  is  complete. 

10.  Detach  from  your  Prepared  Blanks,  Forms  124  and  125,  observing  that  you  have  an 
invoice  from  the  Van  Camp  Plardware  Co.  followed  by  the  goods  and  a  bill  for  the  freight  and 
cartage. 

(a)  Pay  freight  bill  and  make  entry  charging  to  the  former  B.  H.  Freight  account,  not 
because  these  are  branch  house  goods,  but  because  these  goods  form  a  separate  department,  and 
you  can  conveniently  use  this  freight  account  to  keep  the  freight  on  these  goods  separate  from 
the  freight  on  other  goods.  You  may  change  the  name  of  the  account  to  Freight  on  Hardware. 
Charge  the  invoice  to  Hardware  and  post  to  the  former  Hardware  account. 

(b)  Draw  your  check  in  payment  for  this  invoice,  taking  advantage  of  the  cash  discount  and 
remit  by  placing  it  in  the  envelope  of  papers  to  go  to  your  teacher. 

11.  Remit  to  wholesale  houses  for  invoices  last  received  and  place  a  new  order  with  each 
for  such  goods  offered  in  their  price  lists  as  you  see  fit  to  order.  Write  an  original  letter  and 
secure  your  teacher's  criticism  when  you  present  it  for  his  approval. 

12.  (a)     Prove  and  rule  cash, 
(b)     Make  bank  deposit. 

Post  all  entries. 

Prove  bills  receivable  and  payable. 

Prove  shipping  and  consignment  ledgers. 

Take  abstract  of  your  personal  ledgers  and  prove  and  balance  accounts  receivable  and 


(c) 
(d) 
(e) 

(f) 
pavable. 

^    (g) 
(h) 


Take  your  trial  balance. 

Secure  customers'  orders  for  next  day's  trading,  making  such  sales  of  consignment 
goods  as  will  close  out  all  consignments  received,  and  submit  these  orders  to  your  teacher  with 
the  envelope  of  papers  reserved  to  be  presented  to  him  at  this  time  and  with  your  books  properly 
arranged  for  inspection,  accompanied  with  the  usual  duplicate  copy  of  your  daily  report  also 
neatly  copied  into  the  form  below. 

REPORT 

Report  of  School  Duties:    I  take  bookkeeping Hours  a  day. 

Hours  worked  since  last  report ,  Absent Total No.  of  Letters  written 

No.  of  Invoices  bo't  of  wholesale  houses Of  students ,   Total 

No.  of  Payments  made  in  cash ;   in  notes ;    in    acceptances ;    Total 

No.  of  Payments  rec'd  in  cash ;   in  notes ;    in    acceptances ;     Total 

No.  of  Sales  made:     To  T.   &   T.  Co ;    to  students ;  Total  No ,  $ 

No.  of  Entries   made Averqs;e   per   hour Time  on  trial  balance hours. 


NOTES 


Bills  Jieeeivable,  Ledger  Balance 

Total  uncollected  in  bill  book , 

Total  value  of  notes  in  the  safe. 

Bills  Payable,  Ledger  Balance 

Total  unpaid  in  bill  book , 


CASH 


Ledger  Balance 

In  bank,  Stb.  No.. 
In  safe,  Currency 
In  safe,  Checks,  _ 


Total  Cash  on  hand. 


Respectfully  submitted, 


TEACHER'S 


.191..., 


STAMP 


208 


CAMPBELL'S  ACTUAL  ACCOUNTING 


153.  I.  Render  account  sales  of  all  consignments  sold  out  during  your  preceding  day's 
work. 

2.  Fill  orders  approved  by  your  teacher  at  last  closing. 

3.  Check  and  enter  all  invoices  received. 

4.  Make  entry  for  all  payments  received.  Distinguish  carefully  between  payments  of  account 
and  payments  of  notes  or  acceptances. 

5.  Make  payment  for  invoices  received,  either  by  cash,  or  note,  or  by  draft  on  persons  that 
owe  you  unless  otherwise  specified  in  the  terms  of  the  bill. 

6.  Make  payment  for  all  your  own  notes  or  acceptances  that  have  matured. 

7.  Detach  from  your  Prepared  Blanks  Forms  125  and  126,  paying  freight  and  cartage  and 
making  entry  as  instructed  in  152,  10. 

8.  Remit  to  wholesale  houses  as  usual,  in  full  for  preceding  orders,  placing  new  orders  for 
merchandise. 

9.  (a)       Prove  and  rule  cash, 

(b)  Make  bank  deposit. 

(c)  Post  all  entries. 

(d)  Prove  Bills  Receivable  and  Payable. 

(e)  Prove  shipping  ledger  and  consignment  ledger. 

(f)  Take  an  abstract  of  personal  ledgers  and  balance  Accounts  Receivable  and  Payable. 

(g)  Take  trial  balance  of  general  ledger. 

(h)  Secure  customers'  orders  for  next  day's  trading,  disposing  of  all  consignment  goods  on 
hand  and  as  far  as  possible  of  your  own  merchandise  and  submit  these  orders  to  your  teacher  for 
approval  with  your  books  properly  arranged  for  inspection,  accompanied  by  the  envelope  of 
special  papers  and  the  usual  copy  of  the  daily  report  first  carefully  copied  into  the  form  below. 

REPORT 

Report  of  School  Duties:    I  take  bookkeeping Hours  a  day. 

Hours  worked  since  last  report ,  Absent Total No.  of  Letters  written 

No.  of  Invoices  bo't  of  wholesale  houses Of  students ,  Total 

No.  of  Payments  made  in  cash ;   in  notes ;    in    acceptances ;     Total 

No.  of  Payments  rec'd  in  cash ;   in  notes ;    in    acceptances ;     Total 

No.  of  Sales  made:     To  T.   &   T.  Co ;    to  students ;  Total  No ,  $ 

No.  of  Entries  made Average  per  hour Time  on  trial  balance hours. 


NOTES 

CASH 

Sills  lieceivable,  Ledger  Ealance 

Ledger  Balance  .     . .         

Total  uncollected  in  bill  book 

In  bank,  Stb.  No. 
In  safe,  Currency  . . . 

In  safe,  Checks, 

Bills  Payable,  Ledger  Balance 

Total  unpaid  in  bill  book 

.... 

Total  Cash  on  hand 

Respectfully  submitted. 


TEACHER'S 


191 ... .  STAMP 

154.     I.     Render  account  sales  of  all  consignments  on  hand  and  sold  out.     If  any  still  remain 
unsold,  make  special  sales  to  persons  named  by  your  teacher. 

2.     Fill  orders  approved  by  your  teacher  at  last  closing  and  enter  all  invoices  received. 


CAMPBELL'S  ACTUAL  ACCOUNTING  209 

3.  (a)     Collect  all  matured  notes  or  acceptances  and  pay  all  that  you  owe. 

(b)  Discount  at  the  bank  all  notes  or  acceptances  which  you  hold  that  are  not  matured. 

(c)  Pay  all  your  own  outstanding  paper,  securing  a  discount  at  regular  bank  rate  for  the 
imexpired  time.  If  creditors  hesitate  to  accept  payment,  it  will  be  sufficient  to  tell  them  that 
you  are  going  to  sell  out  the  business,  and  that  you  do  not  wish  to  be  responsible  for  payment. 
Observe  that  all  these  instructions  under  3  apply  only  to  notes  and  acceptances  between  your 
firm  and  other  students  present  in  the  schoolroom.  Any  paper  which  you  hold  or  owe  which  is 
made  with  ficticious  persons  or  with  students  who  have  dropped  out  of  school,  may  remain  on 
your  books  for  the  present. 

4.  Settle  in  cash  all  accounts  payable  including  your  debts  to  wholesale  houses  and  collect 
all  accounts  receivable  outstanding  with  students  actually  in  school.  All  accounts  with  ficticious 
persons  and  absentees  you  will  permit  to  remain  on  your  books  for  later  instructions. 

5.  Detach  from  your  Prepared  Blanks  Form  127,  observing  that  it  is  a  memorandum  from 
Mr.  Wemple  addressed  to  you  and  your  partner  in  which  he  expresses  a  desire  to  dissolve  the 
partnership  and  offers  either  to  buy  or  sell  on  certain  terms  which  he  specifies.  Consult  with  your 
partner  and  if  he  wishes  to  buy  the  business,  make  the  sale  to  him,  Mr.  Wemple  and  yourself 
taking  your  shares  in  cash.  But  if  he  does  not  wish  to  buy  out  the  business  for  himself  then 
write  a  memorandum  note  addressed  to  Mr.  Wemple  in  which  you  accept  hi$  proposition  and 
have  your  special  partner  sign  this  with  you.  Place  this  memorandum  in  the  envelope  of  papers 
that  are  to  go  to  your  teacher  with  your  books.  Whether  this  sale  of  the  business  should  be 
made  to  your  partner  who  is  actually  a  student  in  the  schoolroom  or  to  Mr.  Wemple,  the  method 
of  procedure  will  be  exactly  the  same,  the  only  difference  being  in  the  names  of  the  parties  con- 
cerned. The  instructions  following,  which  we  will  base  on  a  supposed  sale  to  Mr.  Wemple,  will 
suit  equally  well  for  a  sale  to  your  other  partner  simply  by  exchanging  their  names.  Mr.  Wem- 
ple's  proposition  as  expressed  in  his  memorandum  note  is  as  follows: 

(a)  All  merchandise  in  stock  at  cost. 

(b)  The  firm's  real  estate  at  10  per  cent,  advance  on  cost. 

(c)  All  furniture,  fixtures  and  chattels  belonging  to  the  firm  at  50  per  cent,  below  cost. 

(d)  All  Bills  Receivable  and  Accounts  Receivable  held  by  the  firm  at  a  discount  of  10  per 
cent,  to  cover  bad  debts  and  collection.  Payment  to  be  made  in  cash,  at  least  to  the  extent  of  the 
firm's  cash  balance,  the  buyers  to  give  their  notes  at  three,  six  and  nine  months  respectively  at  6 
per  cent,  interest  for  the  remainder,  the  said  notes  to  be  secured  by  a  chattel  mortgage  on  the 
stock  and  fixtures. 

6.  Pay  partners'  salaries.  Detach  Form  128,  your  monthly  water  bill,  from  Prepared  Blanks 
and  pay  at  office  or  teacher's  desk. 

7.  Make  interest  entries  to  adjust  investments.  These  may  be  made  as  in  144,  8,  but  the 
student  has  been  promised  another  method.     We  will  illustrate  it  by  an  example. 

A,  B  and  C  are  partners.  A's  capital  is  $5,000,  B's  $3,000,  and  C's  $2,500.  The  joint  capital 
therefore  is  $10,500.  One  third  of  it,  or  the  capital  which  each  should  have  to  make  their  invest- 
ments equal,  is  $3,500.  A's  investment  exceeds  this  amount  by  $1,500.  It  is  evident  therefore  that 
if  A  should  lend  $500  to  B  and  $1,000  to  C,  their  investments  would  be  equal.  Therefore  if  we 
charge  B  with  interest  on  $500  for  one  year  at  6%  and  C  with  interest  on  $1,000  for  the  same 
time  at  the  same  rate  and  credit  A  with  the  sum  of  both  we  have  made  the  adjustment. 

When  there  are  withdrawals  also  to  be  considered  the  question  is  more  complicated.  The 
simplest  method  of  presentation  is  perhaps  as  follows :  Let  the  total  interest  which  A  owes  on 
withdrawals  be  $15,  the  total  that  B  owes  $12.50,  and  the  total  that  C  owes  $13.  If  these  were  car- 
ried into  the  Loss  and  Gain  account  there  would  be  a  credit  total  of  $40.59  in  Interest  and  Dis- 
count and  each  man  would  be  entitled  to  one  third  of  it  under  the  contract,  hence,  A,  who  owes 
$15,  owes  net,  $15  less  $13.50  or  $1.50  which  may  be  deducted  from  the  $90  otherwise  due  him 


2IO 


CAMPBELL'S  ACTUAL  ACCOUNTING 


making  his  credit  $88.50;  B,  who  owes  $12.50  and  will  be  entitled  to  $13.50  from  the  Interest  and 
Discount  account,  is  entitled  to  the  difference  of  $1.00  which  may  be  deducted  from  the  interest 
that  he  would  otherwise  be  charged  with,  making  his  interest  debit  $29.00;  and  C,  who  owes 
$13.00  and  will  be  entitled  to  $13.50,  will  be  entitled  to  deduct  50c  from  the  $60  that  he  would 
otherwise  be  charged  with,  making  his  interest  debit  $59.50.  The  two  credits  of  $1.00  and  50c 
allowed  B  and  C  make  the  $1.50  charged  against  A.  Adjust  your  investments  and  withdrawals 
in  the  manner  illustrated.     Study  will  discover  brevity  and  practice  will  give  facility. 

8.  Proceed  with  the  work  of  closing  your  books  in  order  to  make  the  transfer: 

(a)  Prove  and  rule  cash. 

(b)  Make  bank  deposit. 

(c)  Post  all  entries. 

(d)  Prove  Bills  Receivable  and  Payable. 

(e)  Prove  shipping  ledger  and  consignment  ledger. 

(f)  Prove  sub-ledgers,  then  rule    Accounts  Receivable  and  Payable. 

(g)  Prove  Merchandise,  following  previous  instructions  and  watching  carefully  for  items 
that  are  handled  on  irregular  terms.     See  141,  12. 

9.  Make  entries  as  instructed  by  your  teacher  for  the  correction  of  all  errors  discovered  in 
proving  your  work ;  sell  Dep't  E  goods  to  T.  &  T.  Co.,  then  post  these  entries  and  take  your 
trial  balance. 

10.  In  order  that  no  errors  may  be  passed  in  your  work  at  this  time,  you  will  fill  out  your 
duplicate  report,  copy  it  neatly  in  the  form  below,  and  submit  your  books  and  papers  for 
teacher's  approval  before  closing  your  ledger. 

REPORT 

Report  of  School  Duties:    I  take  bookkeeping Hours  a  day. 

Hours  worked  since  last  report ,  Absent Total No.  of  Letters  written 

No.  of  Invoices  bo't  of  wholesale  houses Of  students ,  Total 

No.  of  Payments  made  in  cash ;  in  notes ;    in    acceptances ;    Total 

No.  of  Payments  rec'd  in  cash ;   in  notes ;    in    acceptances ;    Total 

No.  of  Sales  made:     To  T.   &   T.  Co ;    to  students ;  Total  No ,  $ 

No.  of  Entries  made Average  per  hour Time  on  trial  balance hours. 


NOTES 


Bills  JReceivable,  Ledger  Balance  , 

Total  uncollected  in  bill  book , 

Total  value  of  notes  in  the  safe 

Bills  Payable,  Ledger  Balance 

Total  unpaid  in  bill  book , 


CASH 


Ledger  Balance 

In  bank,  Stb.  No.. 
In  safe,  Currency 
In  safe.  Checks,  _ 


Total  Cash  on  hand. 


MERCHANDISE 


Cost  of  Mdse.  bought 

Present  inventory 

Cost  of  goods  sold  

Sales  of  merchandise 

Gain,  red  ink ;  Loss,  black 

Errors:  Ourfvr.red;  cont.  black 


Department  A 
Goods 


Department  B 
Goods 


TEACHER'S  MARKING 


Accuracy . . . 
Neatness . . . 
Orderliness . 

Records  

Progress. .  . . 
Average.  . . 


Respectfully  submitted, 


.191.... 


TEACHER'S 


STAMP 


CAMPBELL'S  ACTUAL  ACCOUNTING 


211 


155,  Take  inventory  of  Merchandise,  Furniture  and  Fixtures  and  Chattels  according  to  your 
proposition  to  your  partner  and  proceed  to  make  out  a  balance  sheet  as  in  the  supposed  balance 
sheet  of  C.  W.  Burke  &  Co.,  presented  in  (a)  below,  observing  that  the  10  per  cent,  discount 
allowed  by  Mr.  Wemple's  proposition  on  Bills  .Receivable  and  Accounts  Receivable  will  appear  in 
the  Losses  column,  and  that"  the  net  valuations  placed  on  these  notes  and  accounts  are  treated  as 
inventories  and  appear  in  Resources  column.  Note  also  how  the  partners'  private  accounts  are 
handled  in  the  balance  sheet.  When  the  balance  sheet  is  prepared,  submit  it  to  your  teacher  for 
approval  before  proceeding.  Observe  that  H.  F.  Walter  in  the  form  below  takes  the  place  of  E. 
H.  Wemple  in  your  own  work. 

(a) 

BALAITCB   SHB3T   OF    C.    W,    BURKB   ft    CO.,    MAY   SI,    191    . 


L.F. 


Trial  Balanoe 


Losses  A 

Qains 


ReBOurees  & 

LlabilitlOB 


1 
1 
1 
2 
2 
2 
3 
4 
5 
5 
6 
6 
7 
8 
9 
9 

10 

11 

12 

13 

14 


Burlce,  Stock 
Walter,  Stook 
Foley,  Stook 
Burke,  PrlTate 
Walt<^r,  Private 
Foley,  Private 


C.  W*. 

H.  F. 

C.  A. 

C.  W, 

H.  P. 

C.  A. 

Cash 

Mdse.  (Invent,  $9786.05} 

ExpeoEe 

Udss.  Dis. 

Int.  &  Dls. 

Collection  &  Bxehanee 

Loss  &   Gain 

Shlpmont  No.  1 

Storage 

Guaranty 

Comraisslon 

Bills,  Rec.  (Lesfl 

Bills  Payable 

Accts  .  neo  .  (  L^f  sn 

Acots . Payable 


10^,  $657.98) 
10^.  $823.95) 


C,  W,-  Burke's  N«t  Gain 
H.  F.  Walter's  •♦    •• 
C.  A.  Foley's   ••    " 

C.  W.  Burke'8  Stoftk  Credit 

"   "     "  Private  Debit 

"   "     "  Net  Gain 

"   ••     "  Het  Private  Gain 

"   "     "  Present  Worth 
H.  F.,Waltflr'B  Stock  Credit 

"  private  Debit 

"     "  RetGain 

"  Hot  Private  Loss 

"   "     ••  Present  Worth 

C.  A.  Foley's  Stook  Credit 

"     "  Private  Debit 

••     "  Het  Gain 

"   ••     "  Net  Private  Gain 

"   "    "  Present  Worth 


6000  00 


49  50 

100  00 

33  00 

3600  65 

12107  13 

105  00 

14  25 
7  64 

200  00 


731  09 


915  50 


17863  76 


49  50 
90  52 


100  00 
90  51 


33  00 
90  51 


5000  00 
5000  00 
2500  00 


2633  38 


105  00 


51  69 


14 

7 


101 

284 

3 

2 

6 


1500  00 
779  59 


73  11 


91  55 


17863  76 


291  65 
90  52 
90  51 
90  81 


312  30 


51  69 


3600  65 
9786  05 


101 

84 

3 

2 

6 


5000  00 


41  02 


563  09 


5000  00 


9  49 


2500  00 


57  51 


657  98 


823  95 


563  09 


14868  63 


563  09 


14868  63 


(b)  Your  balance  sheet  having  been  approved,  close  books  following  the 
plan  presented  in  your  balance  sheet  ailid  take  a  trial  balance  of  your  ledger  im- 
mediately after  closing,  submitting  your  ledger  and  this  last  trial  balance  with 
your  text-book  to  your  teacher  for  approval  before  proceeding. 

156.     Adjustment  of  Capital  by  Interest — Balance  Sheet  Method. 


1500  00 


779  69 


2279    59 


6041    02 


4990   51 


2557    51 


14868    63 


TEACHER'S 


STAMP 
In  any  case  in  which  the 
adjustment  of  investments  by  interest  has  been  forgotten  until  the  closing  has  progressed  so  far 


212 


CAMPBELL'S  ACTUAL  ACCOUNTING 


that  it  is  not  desirable  to  make  a  cash  book  or  journal  entry,  the  investments  may  be  equalized 
by  red  ink  entries  in  the  closing  of  the  stock  accounts,  computed  on  the  plan  presented  in  154,  7, 
and  represented  in  the  balance  sheet  as  shown  below. 


c.  w. 

Burke's  Hat  Gain 

H.  P. 

Walter's  "    " 

C.  A. 

Foley's   "    " 

#90.51 


C.    W.  Btirlce'B   Stook  Credit 

•      "  ••             Net   GRin                 $90.52 

•»      ••  "              Int.    on   $833.33 

exoess  Invaet.   50.00 

"   ••  "      Private  Debit 

•t   It  H        »     Gain 

•»   ••  ••     present  Worth 

H.  P.  Waltor'n  Stook  Credit 

"      -  n     Het  Gala 

no  I*     Int.  on  $633.33 

excess.  Invest.  50.00 

»   "  ••     Private  Debit 

»   "  *        "    Gain 

••   •»  •>     Present  Worth 

C  A.  Foley's  Stock  Cr«dit 

"   »  ••      Private  debit  $  33.00 

"   «  It     Dr.  to  Int.  on 

nnder  invest.   100.00 

•♦   ••  ••     Private  Debit  total 

•♦   ••  "     Het  Gain  Credit 

•t   «  It      It   Private  Loss 

"   ••  "     Present  Worth 


17863 

76 

17863 
5000 

76 
00 

391 

90 
90 
90 

66 

52 
51 
61 

563  09 

663 

o9 

563  09 

140 
49 

52 

50 

91 

02 

5000 

00 

140 
100 

61 
00 

40 

51 

2600 

00 

133 
90 

00 
51 

42 

49 

14668  63 


14668  63 


2279  59 


5091  02 


5041  51 


2457  51 


14868  63 


157.  Naturally  the  one  purchasing  the  business  purchases  also  the  books  of  accounts.  But 
since  you,  as  a  student,  desire  to  retain  possession  of  the  books  in  which  all  your  work  is  writ- 
ten, we  will  require  Mr.  Wemple  to  provide  himself  with  a  new  set  of  books,  allowing  him,  how- 
ever, access  to  your  books  for  any  reference  that  he  may  need  to  make  to  the  old  accounts ;  and  we 
will  proceed  to  make  entries  which  will  show  the  sale  of  the  business  and  at  the  same  time  clear 
your  books  of  all  accounts  and  inventories  transferred  to  your  partner  in  the  sale.^ 

(a)  Form  Illustrating  Entries  for  a  Sale  of  Business  to  Partner  and  for  Closing  All 
Accounts  in  the  Ledger,  the  figures  being  taken  from  the  supposed  balance  sheet  of  C.  W.  Burke  & 
Co.  at  the  close  of  their  business  May  31,  191. .,  (see  155,  a)  with  interest  adjustments  as  in  156. 
C  W.  Burke  and  C.  A.  Foley  sell  out  to  H.  F.  Walter.  The  following  entries,  presented  in  journal 
form  that  they  may  be  the  better  understood,  entirely  clear  the  books.  All  the  cash  of  the  firm 
is  left  to  Mr.  Burke  and  Mr.  Foley,  and  H.  F.  Walter  is  to  give  three  notes  for  the  balance  of 
$3,947.88  secured  by  a  mortgage  on  the  stock  of  merchandise  and  the  store  and  office  furniture 
and  fixtures.  The  notes  are  not  included  in  the  entries  below,  being  considered  a  personal  transac- 
tion between  the  partners.    They  might,  however,  be  introduced  as  in  the  form  (b). 


1.  If  H.  F.  Walter  retained  the  books  in  the  illustration  in  157  (a),  entries  (1)  and  (2)  in  the  form  under  (a) 
would  be  omitted  and  entry  (4)  would  credit  the  Bills  Payable  instead  of  H.  F.  Walter,  showing  the  notes 
which  Mr.  Walter  gives  in  settling  the  contract. 

2.  This  line  (see  plate  on  page  213)  including  figures  should  be  in  red  ink.  This  item  is  not  to  be  posted. 
All  other  items  are  posted. 

3.  The  student  should  observe  that  the  entries  given  in  the  plate  on  page  10,  not  only  close  out  all  ac- 
counts transferred  to,  or  assumed  by,  Mr.  Walter,  but  that  they  also  close  out  the  accounts  of  the  other  part- 
ners. Mr.  Burke  retaining  the  books,  all  of  these  entries  become  necessary  except  (4)  in  which  Mr.  Burke 
closes  out  his  own  account.  This  entry  would  not  be  made  if  Mr.  Burke  intended  continuing  business  in  the 
same  set  of  books.  Naturally  the  entry  that  he  would  make  instead  would  be  the  one  presented  in  157  (b), 
(1)  which  would  turn  Mr.  Walters'  account  into  a  Bills  Receivable  and  leave  on  Mr.  Burke's  books  Cash  and 
Bills  Receivable  as  resources  and  his  stock  account  as  his  only  liability.  He  desires,  however,  to  indicate  in 
his  books  his  retirement  from  business,  leaving  no  record  to  connect  his  past  business  with  any  future  busi- 
ness in  which  he  may  engage.  This  furnishes  the  reason  for,  and  indicates  the  result  obtained  by,  the  entry 
(4)  in  157  (a). 


CAMPBELL'S  ACTUAL  ACCOUNTING 


213 


(a) 


ILL 


//c2^^fy 


/:5rc?^y 


7/f^^ 


JL4/:^j:5r/ 


^t^/'pM 


y<^^l^'-^-^'-**^»2<«^^>)^ - 


.^^^v/^^  M^. 


-^^.<*^.^^e£^ 


^I/y 


.^^V. 


\  /  f'^p^  ^^^z-^-*^  ^  y  £> 


2  &  3.    For  these  footnotes  see  preceding  page. 


<?^- 


rs' 


3u3fc  ■ 


A^. 


7f'f 


jL^^y 


//^J^^ 


y^, 


^/ 


■// 


^36  ^c 


214 


CAMPBELL'S  ACTUAL  ACCOUNTING 


(b)     Entry  showing  the  receipt  of  the  note  from  E.  H.  Wemple  followed  by  a  second  entry  in 
which  Mr.  Burke  withdraws  the  cash  and  the  note. 


S^ 


ff/ 


^e:^^/ 


/-/ 


aj. 


(o 


^ff7 


/a^s/A' 


J>. 


777 


tr 


// 


158.  To  Sell  Out  Your  Business  To  Your  Partner  and  Make  Entries  That  Will  Clear  The 
Books  of  All  Accounts. 

I.  Compare  the  balance  of  your  Cash  account  with  the  net  credit  of  your  Stock  account.  As 
E.  H.  Wemple  is  to  pay  you  in  cash  or  notes  you  will  reserve  the  firm's  cash  for  yourself  and 
your  special  partner  to  the  full  amount  of  your  net  credits,  provided  there  be  that  much  cash 
on  hand.  If  there  be  more,  the  balance  will  be  transferred  to  E.  H.  Wemple  by  the  firm's  check. 
If  there  be  less,  you  will  draw  up  a  note  in  your  favor  at  six  months,  interest  6  per  cent.,  and 
present  it  to  your  teacher  who  will  affix  E.  H.  Wemple's  signature.  It  will  be  well  to  pay  your 
special  partner  in  cash,  if  there  be  not  cash  enough  for  both  yourself  and  him,  taking  the  note  of 
Mr.  Wemple  for  yourself,  but  any  plan  of  settlement  that  you  agree  upon  will  be  satisfactory  and 
the  more  original  the  better,  provided  you  can  make  a  correct  entry. 

2.  You  might  introduce  a  page  of  four-column  journal  paper  into  your  binder  for  these 
closing  entries,  but  it  will  be  better  accounting  and  show  more  skill  if  you  handle  them  in  your 
cash  book.  The  entry  of  157  (a),  i,  made  in  the  cash  book,  would  require  a  debit  to  H.  F. 
Walter  on  the  credit  side  of  the  book  and  credits  to  the  other  accounts  on  the  debit  side,  while 
if  any  cash  were  transferred  either  way,  it  would  appear  as  the  difference  between  the  entries 
on  the  two  sides.  Observe  that  Accounts  Receivable  would  be  credited  by  entering  the  per- 
sonal credits,  at  full  value,  itemized  in  the  Cash,  Customers'  Ledger,  column,  followed  by  the 
Less  10%  Discount,  in  red  ink,  to  be  subtracted  from  the  black  total  of  the  column  when  added 
and  carried  into  the  General  Ledger  column  for  posting.  This  will  credit  Accts.  Rec.  for  the 
inventory  amount  only  and  each  personal  account  for  its  full  amount.  The  explanation  (see 
157  (a),  i)  can  be  made  in  the  cash  book  by  taking  more  than  one  line,  if  necessary. 

3.  Make  entry  in  the  same  manner  for  the  liabilities  of  your  business  at  this  closing,  crediting 
E.  H.  Wemple  for  the  total  and  debiting  Bills  Payable  and  Accounts  Payable  (see  Accts.  Rec.  in 
2  above)   respectively.     Explain. 

4.  Now  refer  to  157  (a)  (3)  ;  make  entry  charging  your  special  partner  on  the  credit  side 
of  the  cash  book  for  the  net  credit  of  his  stock  account,  and  draw  the  firm's  check  for  whatever 
cash  he  is  to  receive,  crediting  on  the  opposite  side  of  the  cash  book  whatever  account  supplies 
the  balance,  if  the  payment  be  not  all  cash.  This  will  be  E.  H.  Wemple,  Stock,  if  he  is  to  accept  a 
note  from  E.  H.  W.,  as  part  payment ;  or  it  may  be  your  own  Stock  account  if  you  see  fit  to  take 
the  Wemple  note  yourself  and  to  give  the  special  partner  your  own  note  in  settlement.    It  may  be 


CAMPBELL'S  ACTUAL  ACCOUNTING  ^     '         215 

well  to  post  your  entries  thus  far  before  proceeding,  that  you  may  see  exactly  what  still  remains 
to  be  cleared  up  by  your  last  entry. 

5.  Now  make  entry  charging  yourself  and  crediting  the  resources  which  you  are  to  take  in 
payment  for  your  interest  in  the  firm.  If  this  be  cash  in  full,  make  the  entry  on  the  credit  side 
of  your  cash  book.  If  it  consist  of  cash,  and  a  note  from  E.  H.  Wemple,  make  the  entry  first  on 
the  credit  side  of  the  book  crediting  cash  for  the  whole  amount;  then  on  the  debit  side  of  the 
cash  book  crediting  E.  H.  Wemple's  Stock  account  for  the  amount  which  he  pays  by  note.^ 
Explain  (Your  Name)  retired  from  business  zvithdrawing  resources  as  above.  This  is  illustrated 
in  the  entry  marked  (3)  in  the  form  in  145.  Another  plan  for  making  this  entry  would  be  to  let 
E.  H.  Wemple  put  his  note  into  the  firm  and  then  let  C.  W.  Burke  take  it,  crediting  Bills  Receiv- 
able. See  157  (b)  (i)  and  (2).  But  the  facts  are  best  represented  if  the  notes  be  considered  as 
outside  of  the  firm  and  merely  between  the  partners. 

6.  Post  all  entries  to  your  ledger  and  rule  up  accounts  that  balance.  If  all  work  has  been 
correctly  performed,  every  account  in  your  ledger  will  balance  at  this  time  and  should  be  neatly 
ruled. 

7.  Prepare  to  transfer  to  E.  H.  Wemple  the  property  turned  over  to  him  in  this  dissolution 
of  partnership  as  follows  : 

(a)  Endorse  all  Bills  Receivable,  Pay  to  E.  H.  Wemple  or  order  and  sign  the  firm  name,  as 
it  appears  on  the  face  of  the  paper,  per  your  own  name. 

(b)  Make  an  itemized  statement  of  account  against  all  persons  owing  you  and  write  at  the 
the  foot  of  each  statement,  Pay  to  E.  H.  Wemple  or  order,  who  is  authorised  to  receipt  in  full, 
signing  the  firm  name,  as  in  (a). 

(c)  Make  a  bill  of  sale  of  all  Furniture  and  Chattels  either  rendering  a  simple  invoice  or 
executing  the  legal  form  of  a  Bill  of  Sale  (which  may  be  found  in  any  text  on  commercial  law), 
as  your  teacher  may  direct. 

(d)  Prepare  a  quitclaim  deed  for  the  signature  of  your  special  partner  in  which  he  releases 
and  quitclaims  to  E.  H.  Wemple  "all  his  right,  title  and  interest  in  the  following  described  real 

estate,  to-wit:  Lots  numbered and in  Block  numbered in  the  original  plat 

of  the  city  of  College  City"  filling  the  blanks  as  indicated  in  the  form  in  159,  being  careful  to  insert 
the  correct  numbers  of  the  lots  and  block.  These  may  be  learned  from  the  deeds  which  you  hold. 
Have  your  special  partner  execute  this  deed  in  perfect  form. 

(e)  Make  out  a  full  warranty  deed  transferring  all  your  right  and  title  to  the  real  estate  to 
E.  H.  Wemple.  This  will  be  a  personal  transfer  signed  by  yourself  and  will  be  in  form  very  much 
like  the  deed  in  144,  4,  except  that  you  deed  your  entire  interest  instead  of  a  one-half  interest. 
Make  the  description  of  property  the  same  as  in  your  partner's  quitclaim  deed. 

(f)  Prepare  a  list  of  personal  accounts  payable  and  a  list  of  your  bills  payable  to  be  handed 
to  Mr.  Wemple  with  other  papers  and  make  a  record  in  your  bill  book,  both  for  the  bills  payable 
and  receivable,  noting  that  the  bills  receivable  have  been  Turned  over  to  Mr.  Wemple,  and  the 
bills  payable  Assumed  by  Mr.  Wemple. 

(g)  Make  out  as  many  copies  of  the  following  Notice  of  Dissolution  as  may  be  necessary  to 
send  one  to  each  of  your  creditors,  and  then  post  or  publish  one  for  the  benefit  of  your  customers. 
Fill  all  blanks  carefully  and  correctly.  Sign  it  and  have  your  special  partner  sign  it.  Mr. 
Wemple's  signature  may  be  affixed  by  your  teacher.  The  signatures  should  be  in  the  order  in 
which  the  partner's  names  appear  in  the  body  of  the  notice. 


1.  The  student  should  study  out  carefully  the  reason  for  crediting  E.  H.  Wemple's  stock  account  in  this 
transaction,  it  being  evident  that  if  the  student  had  taken  any  of  the  negotiable  paper  of  the  firm  as  part  pay- 
ment the  credit  would  have  been  Bills  Receivable.  If  the  reason  be  not  clear,  discuss  the  proposition  with  your 
teacher,  or  make  the  entry  as  illustrated  in  157  (b). 


2l6 


CAMPBELL'S  ACTUAL  ACCOUNTL\G 


HOTICE     OF     DISSOLUTION 

The  co-partnership  heretofore  existing  "between 

and  bas  this   day  been 


dissolved  hy  mutual  consent. 


and 


retiring  from  the  huslness.  All  dehts  owed  hy  the  firm  of  ^ 

will  he  paid  hy  who  will  continue 


the  business  tmder  the  name  of 


due  the  firm  must  be  paid  to  the  said 
Is  authorized  to  receipt  for  the  same. 


and  all  debts 
who  alone 


Dated 


191 


(h)  Lastly  draw  up  three  notes  in  your  own  favor  for  Mr.  Wemple's  signature,  dividing  the 
amount  that  he  owes  into  three  equal  parts  and  drawing  one  note  for  each  separate  amount.  Make 
the  time  of  these  notes  respectively,  po  days  after  date,  i8o  days  after  date,  and  270  days  after 
date.  Make  the  rate  of  interest  6%,  making  your  notes  in  other  particulars  conform  in  general 
to  the  notes  described  in  the  mortgage  in  160  given  by  E.  H.  Wemple  to  C.  W  Burke.  Then  take 
from  your  legal  blanks  a  form  of  mercantile  chattel  mortgage  and  fill  it  out  as  indicated  in  the 
form  in  160  ready  for  Mr.  Wemple's  signature. 

8.     When  these  notes  and  the  mortgage  and  all  other  papers  described  TEACHER'S 

in  7  are  prepared  as  instructed,  present  them  to  your  teacher  for  his  approval 
with  your  ledger  ruled  and  closed  as  previously  instructed  and  your  text- 
book opened  at  this  page  of  the  work  for  your  teacher's  stamp  of  approval. 
Place  all  papers,  merchandise  tickets  and  other  property  or  evidences  of 
property  transferred  to  Mr.  Wemple  in  an  envelope  bearing  his  name  and 
place  it  in  compartment  8  of  your  filing  case  until  you  receive  further  in- 
structions concerninsf  it. 


STAMP 


..ie5?Si^^*^^^*^  ;^-^«s<^^^ ';;^«z^^^^  ":^§-ts?-^z>-^ 


i^L^^££^ 


J^ 


/ 
2.0 

2Z 

9a 


/ 


2^y<i^f 


^7/^ 


^/y 


r/ 


7^ 


7^- 


3J/J 


r/ 


CAMPBELL'S  ACTUAL  ACCOUNTING  217 


159  QUIT-CLAIM     DEED. 


Cl)l$  Indenture  UP  itne$$Ctb»    Xhat   C.    a.    Foley,  a  member   of   the    firm  of.C  W. 

Burke    &    Company,      of      Urown      county,  in  the  state  of        Y.     S.,      does 

RELEASE  AND  QUIT-CLAIM  to  H.  F.  Walter  of  Urown  county,  in  the  state  of 
Y.    S.  ,    for  the  sum  of   Fourteen     Hundred      Sixty-six     67/100      (1466.67) 

Dollars,  all  his  right,  interest  and  title  in  the  following  REAL  ESTATE  in  Urown      County,  In  the  State  of 

Y.  S.  ,  to-wit:  Lots  numbered  (12)  twelve  and  (13)  thirteen  in  Block 
numbered( 26) twenty-six  in  the  original  plat  of  the  city  of  College 
City,  which  plat  is  on  file  in  the  office  of  the  Register  of 
Deeds  of  Urown  County,  Y.  S. 


IN  WITNESS  WHEREOF,  the  said     C.       A.       Foley    ha S  hereunto  set    his     hand  and  seal,  this 

thirty-first    day  of  Maj^  ,  i9 


%^,/,r^^ 


(Seal.) 

(Seal.) 
(Seal.) 


State  o?  Y.S.,    Urown    County,  ss: 

Before  me.  Veritas    Sobeit,  a    Notary   Public^"*"** 

for  said  County,  this    3  1 S  t    <iay   of       May,    1^ 

C .    A      Fo  1  ey   acknowledged  the  execution  of  the  annexed  Deed. 

Witness  my  hand  and  seal. 

My  commission  expires  August  31st,  19 


2l8 


CAMPBELL'S  ACTUAL  ACCOUNTING 


160    MERCANTILE  CHATTEL  MORTGAGE 


1know  all  nDcn  bi?  tbcac  iprceents,  ^hat    h.  f.  waiter,        of     urown 

County,  In  the  State  of  Y  .  S  .  ,  mortgages  and  warrants  to  Q  .  W  .  BurkC  of  UrOWn  County.  In  the  State  of 
Y.S.  ,  the  following  described  personal  property,  situate  in  the  City  of  CoHege  C  i  tV  in 
Urown      County,  in  the  State  of       Y  •      S  .  ,      '"  ^^^  store  room  occupied  by  said  mortgagor,  as  a  Gcneral 

and     Commission        store,  and  known  as  No.     1722    Main      Street,  to-wlt; 

The  entire  stock  of  goods,  wares,  merchandise  and  personal  property  of  every  nature  and  description,  includ- 
ing groceries,  provisions,  green  and  dried  fruits,  vegetables,  fresh,  salt  and  dried  meats  and  fish,  poultry,  dairy 
products,  wooden  and  willow  ware,  brushes,  crockery  and  glass  ware,  nuts,  grocers',  druggists'  and  hardware 
suindries.  cigars,  tobaccos  and  smokers'  articles,  stationery,  sugars,  coffees,  teas,  spices,  flour,  syrup,  vinegar, 
oils,  rice,  salt,  soaps,  starch,  canned  and  bottled  goods,  cocoa,  chocolate,  preserves,  jellies,  baking  powders,  ex- 
tracts, cereals,  seeds,  chimneys,  burners,  rope,  twine,  paper  bags  and  wrapping  paper,  blank  books,  bread,  cakes, 
crackers  and  candies,  dry  goods,  notions,  clothing,  boots  and  shoes,  millinery,  furniture  and  hardware;  also  all  fixtures 
and  store  furniture  used  in  said  store,  including  all  safes,  scales,  coffee  and  spice  mills,  refrigerators,  stoves,  show- 
cases counters,  shelving,  bins,  railing,  partitions,  display  stands,  racks,  blocks,  oil  tanks,  cheese  safes,  gas 
fixtures  and  globes,  desks,  butchers'  tools,  cash  registers,  and  cash  and  goods-carrying  appliances,  all  of  afore- 
said property  being  located  as  aforesaid,  also  all  books  of  account  and  the  accounts  contained  therein,  bills 
receivable  and  choses  in  action,  now  or  hereafter  acquired  by  said  mortgagor  in  the  conduct  of  the  business 
of  said  store,  and  said' accounts,  bills  receivable  and  choses  in  action  are  hereby  pledged  and  assigned  to  said 
mortgagee  as  additional  security;  also  all  wagons,  trucks,  harness,  horses  and  mules  used  In  the  delivery  of 
goods   sold   in   the  regular  course   of   business   carried   on  In  said  store,  to  secure  the  payment  of  till* 6 6 

promissory  notes  all  dated  at    CollegO     City,     Y.  S  .  ,     May    31st,      19 ,    each  for  the  sum   of 

Thirteen  Hundred    Fifteen  and   96/100      (1315.96)    Dollars    given  by  said 

mortgagor    to    said    mortgagee,    payable    respectively    on  or  before  Nine  ty  ,  One  Hundred  e  ighty , 

and   Two    hundred    seventy     days     from  said  date,  at  The    Garden     City    Bank 

College  City,  Y.  S.  ,  ^'***  interest  at  the  rate  of  six  per  cent,  per  annum  frOm  date 
and   ten  per  cent,    attorney's    fees,    without    relief    from    valuation    or  appraisement  laws. 

It  is  understood  and  agreed  by  the  parties  hereto  that  said  mortgagor  shall  retain  possession  of  said 
mortgaged  property,  and  have  the  right  to  sell  the  same  at  retail  in  the  regular  course  of  business,  provided,  how- 
ever, that  the  net  proceeds  of  said  sales  shall  be  fully  and  faithfully  paid  over  to  said  mortgagee,  and  applied 
to  the  payment  and  discharge  of  said  noieg  j     and  provided    further    that    said    mortgagor   shall    not    permit    the 

aggregate  value  of  said  stock  of  goods  to  become  materially  depreciated  or  reduced,  but  that  said  mortgagor 
shall  keep  the  same  up  to  Its  present  standard  of  quality,  quantity  and  value,  and  that  all  additions  and  accre- 
tions-to  said  stock  and  fixtures  whatsoever,  shall  be  subject  to  the  lien  of  this  mortgage,  and  held  for  the  payment 
and  security  of  the  above  mentioned  notes,  precisely  the  same  as  the  property  covered  by  this  mortgage  at  this 
time. 

It  is  further  understood  by  the  parties  hereto  that  if  said  mortgagor  shall  retain  possession  of  said  property 
with  the  privilege  of  selling  therefrom  In  the  regular  course  of  retail  trade,  as  above  set  out,  and  any  one  of 
said  notes  is  not  promptly  paid  at  maturity,  then  all  of  said  notes  shall  immediately  become  due  and  payable, 
and  said  mortgagee  shall  have  the  right  to  take  and  keej^  possession  of  said  property  wherever  the  same  may 
be  found,  without  process  of  law,  and  the  same  shall  become  the  absolute  property  of  said  mortgagee.  Said 
mortgagor  hereby  expressly  agrees  not  to  remove  the  said  property  from  the  place  where  it  now  Is.  without 
the  written  consent  of  said  mortgagee,  nor  sell,  assign  or  lease  the  same  without  such  consent,  except  as  herein 
above  provided.  Such  mortgagor  further  agrees  to  use  said  property  well,  and  keep  the  same  Insured  in  some 
reliable    insurance    company,    or    companies,    to    the    satisfaction    of    said     mortgagee,     for    a     sum     not     less     than 

Four     Thousand  doHars.    payable    to    said    mortgagee,   and    in    good    condition 

and  repair,  and  deliver  the  policies  for  such  insurance  into  the  possession  of  said  mortgagee. 

In  case  of  failure  to  insure  said  property  and  deliver  the  policies  for  said  insurance  as  above  provided, 
said  mortgagee,  his  administrators,  executors,  successors  or  assigns  may  procure  such  insurance,  and  all  money 
paid  by  such  mortgagee  for  such  insurance,  with  interest  thereon  at  eight  per  cent  per  annum,  shall  become  so 
much    additional    Indebtedness    secured    by    this   mortgage. 

In  case  of  default  in  any  of  the  above  conditions  on  the  part  of  said  mortgagor,  or  If  in  the  opinion  of 
said  mortgagee  said  property  is  in  danger  of  being  materially  injured,  wasted  or  lost,  or  the  security  of  this 
mortgage  impaired  by  diminution,  removal  or  waste  of  said  property  or  if  the  property  shall  be  levied  or»  "by 
execution  from  any  court,  or  shall  go  Into  the  hands  of  any  administrator,  guardian,  executor,  assignee,  receiver, 
trustee,  commissioner,  or  public  officer  to  be  sold,  then  and  in  either  of  such  cases,  said  mortgagee,  his  attor- 
neys, agents,  administrators,  executors,  guardians  or  assigns,  or  any  or  either  of  them,  shall  have  the  right  to 
take  immediate  and  unconditional  possession  of  the  same,  wherever  the  same  can  be  found,  and  sell  the  same  at 
public  sale,  without  any  proceeding  or  decree  of  foreclosure  first  had  and  obtained,  to  the  highest  bidder  for  cash 
In  hand,  or  any  reasonable  credit,  as  said  mortgagee,  his  administrators,  executors,  successors  or  assigns,  may 
deem  best,  after  giving  three  days'  notice  of  the  time,  place  and  terms  of  sale,  with  a  description  of  the  property 
to  be  sold  by  at  least  three  advertisements  of  such  sale  in  printing  or  writing,  posted  In  public  places  in  the 
vicinity  where  the  sale  is  to  take  place,  or  at  private  sale  without  notice,  and  to  retain  from  the  proceeds  derived 
therefrom  the  amount  of  money  hereby  secured,  with  Interest  at  the  rate  of  eight  per  cent,  per  annum,  including 
all  costs,  charges  and  expenses  Incurred  or  sustained  by  said  mortgagee  in  taking,  removing,  keeping,  storing, 
advertising  and  selling  said  property,  and  to  discharge  any  claims  or  liens  of  third  persons  alTectlng  the  same, 
rendering  the  surplus  to  said  mortgagor  or  his  administrators,  executors,  successors  or  assigns.  Said  mort- 
gagor hereby  assigns  his  lease  for  said  store-room,  and  the  right  to  possession  thereof,  to  said  mortgagee,  pro- 
vided, however,  that  the  right  to  possession  of  said  store- room  hereunder  shall  accrue  to  said  mortgagee  contem- 
poraneously with  his  right  to  the  possession  of  the  stock  of  goods  hereby  mortgaged. 
Witness      mv        hand.,    .and  seal.        this  31st      day  of     MaV     19 


my 


May 


IIQlitne09 


^^^^^--  gP 


state  of  Y  .  S  .  ,      County  of    UrOWn,     "■■ 

Before  me.     Veritas     Sobeit,    a  Notary  Public  In  and  for  UrOWn 

County  and  State  of    Y,     S.  ,         personally  appeared     H.F.     Walter    and 
acknowledged  the  within  mortgage  to  be      hiS       voluntary  act  and  deed 
■Witness  my  hand  and  notarial  seal,  tnis  .31  St    day  of     May  19 


•In  many  States  contracts  acknowledged  before  a  notary  do  not  need  witnesses. 


CAMPBELL'S  ACTUAL  ACCOUNTING 


219 


161.     Single  Entry,  Method  I. 

I.  Having  sold  out  your  business  in  College  City  you  will  re-engage  in  business  in  College 
Park.  In  your  new  location,  you  will  buy  out  an  exclusive  Tea  and  Coffee  Business,  and  will 
handle  these  goods  exclusively,  in  Department  A.  For  the  accommodation  of  other  students  in  the 
schoolroom,  you  will  continue  to  buy  such  goods  as  are  offered,  classing  them  as  Department  E. 

The  firm  that  you  buy  out,  H.  D.  Fay  &  Co.,  turn  over  to  you  the  following  inventories  of 
merchandise,  chattels,  and  accounts,  which  inventories  you  will  proceed  to  copy  into  your  two- 
column  journal,  on  a  new  page  following  the  last  work  in  that  book. 


MERCEAKDISE  KTVEUTORY  OF  H.   D.   FAY  &  CO. 


19 


27 

18 
27 
16 
45 
90 
36 
45 


hlf.   chsts.   Japan  Tea  1350  Its.  33  l/S  i 

•*           "         Oolong  Tea  900  "  49  A 

"           "         Bng.   Break  Tea  1620  "  62  l/E  i 

oases  Ceylon  Tea  900  *  37  1/2  p 

IDXB.     Revere  Coffee  2250  "  35  i 

"         Lexington  Coffee  4600  "  32  jj 

"         Concord  Coffee  1800  "  £8  i 

"         Continental  Coffee  2250  "  25  ^ 


Less  12  1/2  ^  Trade  Disoonnt 


Inventory  of  Store  and  Office  Fumltnre, 
H.   D.  Fay  &  Co. 
Counters,  shelving  and  show  oases,   cost  $300,  Die.   50  % 
Heating  and  lighting  apparatus,  cost  $200,         Dis.   50  % 


Inventory  of  Accounts  Receivable, 
H.  D.  Fay  &  Co. 
Hanson  &  Co. ,  Sacramento*, 
F.  H.   ijwan  &  Co.,  Los  Angeles, 
M.   A.   Birge  &  Co.,  Centralla, 
Stewart  &  Parker,  Boulder  Creek, 
Less  10  %  for  oolleotlon. 


Good  Will  Inventoried  at 

Total  value  of  resources 


Inventory  of  Accounts  Payable, 
H.   D.   Fay  &  Co. 
(Assumed  for  paymcct  by  the  purchaser) 
F.   W.   Stone  &  Co.,  Hew  York,    SOds,   3-10,   E-10,   1-30, 
H.  W.   Spurr  Coffee  Co.,  Boston"  n  n  n 

Het  Inventory  Value 


450 
441 

lOlE 
337 
787 

1440 
504 
562 


5535 
691 


160 
100 


756 
125 

98 
140 

-112. 


672 

1053 


00 
00 
50 
50 
50 
00 
00 
50 
00 
87 


00 

00 


55 
26 
35 
21 


30 
87 


4843 


E50 


1008 


1000 


7101 


1726 


5375 


13 


00 


33 


00 


4r 


17 


2T 


7.  By  the  terms  of  your  purchase  you  are  to  pay  one  third  to  one  half  of  the  above  net  in- 
ventory value  in  cash  and  to  give  three  notes,  each  for  one  third  of  the  balance,  secured  by  a 
mercantile  chattel  mortgage  on  the  above  merchandise  and  office  furniture,  the  said  notes  to  be 
payable  in  30,  60  and  90  days  respectively.  Make  the  cash  payment,  execute  the  notes  and  mort- 
gage  following  the  form  in   160  and  then  you  will  be  ready  to  make 

8.  Entry  Opening  a  Set  of  Single  Entry  Books.  The  Business  Being  in  Operation,  but  With- 
out Any  Preceding  Records  Except  as  Furnished  by  Inventories.  Make  your  opening  entry  as 
in  the  form  following.  Observe  that  at  any  time,  in  any  business,  where  there  have  been  no 
previous  records,  or  only  imperfect  records,  a  set  of  books  in  either  single  or  double  entry,  may 
be  opened,  the  resources  and  liabilities  being  obtained  by  inventories  as  above.    Make  this  entry 


220 


CAMPBELL'S  ACTUAL  ACCOUNTING 


also  in  the  double  entry  form,  on  journal  paper  for  practice  and  comparison,  and  submit  it  to  your 
teacher.     Submit  at  this  time  also  your  orders  for  the  day's  trading. 


(a) 


~~^^g^-i^^^^^^^^^^^^L^^     '^.  sz^,  J/^^<^^^^  j^  /^ /- 


*^,<«»-»*«^-*:^-«z-*^ti^*^^^(?</ 


/{/at  33 


/^f^>t> 


/^yfff  a-/^ 


•^syi  aa- 


y^aT-/ 

^y3,S, 

/a^rjr'y 


CAMPBELL'S  ACTUAL  ACCOUNTING 


221 


(b) 


1 


.Sv 


3a 


//f~ 


<^/ 


^^r. 


^i' 7>«-  jt^ 


/^a^/ 


(9^ 


i'.s? 


9.  Post  your  opening  entry  at  once,  opening  accounts  in  the  ledger  with  the  personal 
accounts  and  observing  that  these  accounts  are  all  that  are  kept  in  single  entry  books.  A  cash 
account,  even,  is  not  essential,  but  as  every  business  man  that  keeps  books  at  all  likes  to  keep 
track  of  his  cash,  we  will  add  a  cash  account  to  our  list  of  accounts,  but  will  keep  it  in  a  cash  book 
which  you  will  open  on  a  single  page,  entering  your  cash  balance  taken  from  your  opening  entry 
as  shown  at  the  top  of  the  left  hand  column  in  the  form  on  page  216. 

ID.  To  obtain  possession  of  your  inventories,  detach  from  your  page  of  prepared  blanks, 
Forms  128  and  129,  observing  that  Form  128  is  an  order  on  the  College  Commercial  Company, 
which  will  secure  your  merchandise  when  your  teacher  has  signed  below  the  printed  signature  of 
the  Associated  Officers,  and  that  Form  129,  consists  of  tickets  representing  the  items  included  in 
your  Inventory  of  Store  and  Office  Furniture.  When  you  get  possession  of  these  goods,  place  the 
merchandise  with  your  wholesale  stock  and  the  other  tickets  in  an  envelope  marked,  Store  and 
Office  Furniture. 

11.  Fill  your  orders  and  enter  them  in  your  journal  as  illustrated  in  the  form  in  8  (b). 

12.  Secure  cash  payment,  if  possible,  for  several  of  the  sales  just  made  and  enter  the  cash  in 
the  Cash  Book,  marking  the  journal  entry  Paid  as  illustrated  in  the  single  entry  forms  in  8 
(b)  preceding. 

13.  Remit  to  F.  W.  Stone  &  Co.  and  to  the  Spurr  Coflfee  Co.  for  the  amounts  in  their  favor 
assumed  by  you  on  purchasing  this  business.     Observe  that  you   are  entitled   to  the   usual   dis- 


222 


CAMPBELL'S  ACTUAL  ACCOUNTING 


counts,  and  deduct  the  amount  of  discount  from  the  respective  bills  when  you  remit.  Accounts 
having  been  opened  with  these  firms  in  your  ledger,  you  will  make  journal  entry  charging  them 
for  the  amount  of  the  cash  and  discount  as  illustrated  in  8  (b),  June  20.  You  will  also  make 
entry  in  the  cash  book  for  the  amount  of  cash  paid  out,  as  illustrated  in  single  entry  cash 
in  the  form  on  p.  216,  June  25, 

14.  Make  out  statements  against  each  of  the  Accounts  Receivable  turned  over  to  you  by  H. 

D.  Fay  &  Co.,  and  draw  a  draft  on  each  in  your  own  favor  for  the  amount  of  the  statement. 
Present  these  statements  and  drafts  to  your  teacher  who  will  retain  the  statements  as  specimens 
of  your  work  and  will  accept  your  drafts  payable  at  the  bank,  or  will  send  you  to  the  manager 
of  the  Assoc.  Offices  to  have  your  drafts  accepted. 

15.  If  you  have  not  yet  received  at  least  six  invoices  of  merchandise  for  your  Department 

E,  report  to  your  teacher  and  follow  his  instructions  in  regard  to  securing  them. 

16.  Place  your  orders  with  the  Spurr  Coflfee  Co.  and  F.  W.  Stone  &  Co.  for  new  goods  equal  in 
amount  to  the  sales  you  have  made  out  of  your  original  stock.  In  these  letters  state  that  you 
have  recently  purchased  the  stock  and  good  will  of  H.  D.  Fay  &  Co.,  and  will  be  pleased  to  con- 
tinue business  with  them,  if  prices  are  favorable. 

17.  Make  payment  for  invoices  received  from  students  as  follows: 

(a)  For  two  invoices  make  payment  in  cash,  making  entry  in  the  cash  book  as  illustrated  on 
p.  216,  June  2.  If  these  invoices  are  not  already  entered  in  the  journal  to  the  credit  of  the 
sellers,  the  journal  entry  may  be  omitted  both  for  the  invoice  and  for  payment,  but  if  the  invoice 
has  been  entered  to  the  sellers'  credit,  entry  must  also  be  made  in  the  journal,  charging  them  with 
the  payment  as  in  13  above. 

(b)  Pay  two  invoices  by  giving  notes.  If  the  invoices  have  been  entered  to  the  credit  of 
the  sellers,  the  sellers  must  be  charged  in  the  journal  for  both  the  note  and  any  cash  discount.  If 
the  sellers  have  not  been  credited  for  the  invoices,  no  charge  is  to  be  made  for  the  payment,  but 
in  either  case  the  note  must  be  recorded  in  the  bill  book. 

(c)  Permit  remaining  invoices  to  remain  on  account. 

18.  Post  all  entries  in  your  journal  to  your  ledger  and  then  take  an  abstract  of  all  accounts 
of  your  ledger  and  verify  it  by  adding  together  separately  the  debits  and  credits  of  your  journal. 
See  illustrations  in  form  (a)  and  (b). 

(a) 


(b) 


7^ 


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4saf(3_ 


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^^=2^^€^^-y^ 


2/4^yg 


dr/3/ 


j^££liX 


<r3 


CAMPBELL'S  ACTUAL  ACCOUNTING 


223 


Next  make  out  on  journal  paper  a  statement  as  illustrated  in  form  (c)  following,  being  very- 
careful  in  your  posting,  in  your  additions  and  in  the  computation  of  your  inventory, 
(c) 


.J:^^^!'-^^^    /^^oixi^^^^r-ty  ,i::>'Z^.^-^t^ 


2SO- 

u- 


23/c 


^J.^/ 
^/3/ 


Z^^ 


S^ 


^2. 


When  your  statement  is  completed  work  out  a  proof  of  accuracy  of  your  work  as  illustrated 
in  (d)  following.  If  your  work  is  correct  the  resources  of  your  statement  will  correspond  to  the 
black  ink  footings  of  this  proof  and  the  liabilities  of  your  statement  to  the  red  ink  footings.  Ob- 
serve that  in  the  proof,  C.  W.  Burke's  Present  Worth  in  red  includes  the  net  gain  shown  by  the 
statement.  If  your  work  does  not  prove  in  the  merchandise  account  as  indicated  by  your  proof 
above,  it  will  appear  in  the  fact  that  your  inventory  does  not  agree  with  the  black  ink  footings  of 
the  merchandise  column.  If  this  should  be  the  case  you  will  need  to  work  an  expert  report  and 
prove  your  merchandise  as  in  double  entry. 


<d) 

C.  W.  BURKE 

FURNITURE 

MEIiniANDISE 

CASH 

ACCTS.  REC. 

ACCTS    PAY. 

BILLS  REC. 

BILLS  PAY. 

GOOD  WILL 

EXPENSE 

SALARIES 

LOSS  t  CAIN 

1 

10709 

5a 

250 

00 

»f603 

6S 

2m  6 

69 

1120 

37 

I»t30 

88 

1000 

00 

112 

01 

2 

5578 

05 

1726 

17 

3851 

8g 

3 

551 

79 

601 

53 

49 

74 

»f 

iiSO 

?,«; 

37"+ 

50 

93 

62 

5 

mo 

21 

1  i+O 

21 

6 

655 

75 

672 

30 

13 

55 

7 

782 

m 

782 

m 

S 

2561 

36 

2567 

92 

6 

56 

9 

76 

00 

(>e 

00 

10 

00 

10 

37    50 

37 

50 

11 

9g 

02 

98 

02 

12 

129 

99 

129 

99 

5261 

52 

250 

op 

J771 

01 

417 

r^ 

I'+s? 

67 

10?? 

S7 

648 

47 

1253 

96 

1000 

00 

66 

00 

37    50 

II 1 

1 

1 

Note. — Observe  that  in  the  proof  above  the  plan  is  to  take  each  entry,  or  group  of  similar  entries,  and  ar- 
range the  results  on  the  basis  of  double  entry.  Line  1  above  presents  the  first  part  of  the  illustrative  opening 
entry  presented  on  p.  220  in  which  C.  W.  Burke's  credit,  and  the  10%  profit  allowed  him  on  his  accounts  receiva- 
ble appear  in  red  to  indicate  credits  and  his  resources  in  black  ink  to  indicate  debits.  Observe  that  the  debits 
and  credits  of  this  line  are  equal.  Line  2  presents  C.  W.  Burke's  debit  and  his  liabilities  in  the  same  man- 
ner, and  again  the  red  and  black  figures  of  the  line  are  equal.  Line  -3  is  from  the  illustrative  journal  pre- 
sented in  11  and  groups  in  one  sum  all  the  time  sales  as  a  credit  in  Merchandise,  and  a  debit  in  Accounts 
Receivable.  Observe  that  the  credit  placed  to  Merchandise  is  the  cost  value  of  the  sales,  the  profit  being 
placed  in  Loss  and  Gain.  Line  4  groups  in  the  same  manner  the  cash  sales.  Line  5  is  from  the  journal, 
t»eing  the  total   of  all  credits  to  personal  accounts  for  cash  received.    One  side  of  this  line,  as  also  in  the  line 


224 


CAMPBELL'S  ACTUAL  ACCOUNTING 


preceding  and  in  6  following,  is  found  in  the  cash  book  and  should  be  checked  that  it  be  not  considered 
again.  Line  6  groups  from  the  journal  the  debits  to  personal  accounts  and  the  credit  is  found  In  the  cash 
book.  If  no  cash  book  were  kept  it  would  be  supplied  as  was  the  merchandise  in  lines  3  and  4.  Observe 
that  the  credit  shown  in  the  Loss  and  Gain  column  is  the  Merchandise  Discount.  Line  7  may  be  taken 
either  from  the  cash  book  or  the  bill  book  and  should  be  checked  in  each,  as  the  debit  is  from  one  and  the 
credit  from  the  other.  Line  8  is  obtained  in  the  same  manner.  Line  9  is  obtained  from  the  cash  book,  the 
inventory  supplying  the  debit  found  in  Expense  column  and  the  difference  going  into  Loss.  Line  10  is  from 
the  inventory  of  salaries  unpaid  and  gives  a  liability  or  credit  in  Salaries  and  a  Loss  of  the  same  amount. 
Line  11  is  a  readjustment.  As  all  accounts  receivable  on  which  the  10%  ($112.04)  of  gain  in  Line  1  have  not 
been  collected  that  is  not  yet  certainly  gain.  The  proportion  of  that  gain  that  belongs  to  those  not  yet  col- 
lected is  the  $98.02  which  is  entered  in  the  Loss  and  Gain  column  as  a  loss  and  deducted  from  Accounts  Re- 
ceivable. Line  12  represents  the  profit.  This  is  entered  in  the  Loss  and  Gain  column  in  black  to  balance 
the  column  and  is  carried  into  C.  W.  Burke's  column  in  red  to  increase  his  net  capital.  The  footing  line  pre- 
sents the  difference  between  the  debits  and  credits  of  each  column  shown  in  the  color  representing  the  larger 
amount  and  presents,  as  you  will  observe,  the  resources  and  liabilities  of  C.  W.  Burke  in  the  illustrative 
statement  presented  in  (c)  above. 

19.  When  your  work  is  proved  and  satisfactory,  enter  your  statement  in  your  journal  next 
following  the  Abstract  of  Ledger  and  submit  your  books  with  your  proof  of  accuracy  to  your 
teacher  for  approval,  with  the  usual  duplicate  copy  of  your  report  and  your  orders  secured  for  an- 
other day's  trading. 

REPORT 


Report  of  School  Duties:    I  take  bookkeeping Hours  a  day. 

Hours  worked  since  last  report ,  Absent Total No.  of  Letters  written. 


162.     Single   Entry. — Method  II. 

In  your  previous  work  we  have  given  the  simplest  or  fundamental  style  of  single  entry. 
While  this  method  of  keeping  books  might  be  presented  in  as  many  different  forms  as  there  are 
different  kinds  of  accounts  in  one's  ledger  and  might  present  every  variation  between  the  simplest 
single  entry  and  full  double  entry  bookkeeping,  we  will  present  just  one  other  method  which  you 
will  observe  is  considerably  more  complete  than  what  you  have  studied  and  which  would  cer- 
tainly be  more  satisfactory  if  single  entry  were  at  all  to  be  recommended  for  business  purposes. 

I.  Open  a  double  page  Cash  Book,  an  Invoice  Record  Book  and  a  Sales  Book  or  Order 
Book  following  the  forms  in  (a),  (b)  and  (c).  The  journal  which  you  will  continue  to  use 
will  be  similar  to  the  journal  which  you  have  used  except  that  debits  will  be  placed  in  the  left 
hand  column  and  credits  in  the  right,  all  itemizing  being  done  in  the  wide  center  column,  as  in 
double  entry  journalizing. 

SINGLE  ENTRY  CASH  BOOK 


(b) 


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2. 

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3/ 
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PObTED    ITEMS 


OSE      DIS  C«SM    RECEIPTS 


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CAMPBELL'S  ACTUAL  ACCOUNTING 


225 


No.  of  Invoices  bo't  of  wholesale  houses 

No.  of  Payments  made  in  cash ;  in  notes. 

No.  of  Payments  rec'd  in  cash ;   in  notes. 

No.  of  Sales  made:     To  T.   &   T.  Co 

No.  of  Entries  made Average  per  hour... 


...Of  students ,  Total. 

;    in    acceptances 

;    in    acceptances 

to  students ;  Total  No 

Time  on  trial  balance 


Total 

Total 

$ 

hours. 


NOTES 


Bills  Heceivable,  Ledger  Balance 

Total  uncollected  in  bill  book , 

Total  value  of  notes  in  the  safe 

Bills  Payable,  Ledger  Balance 

Total  unpaid  in  bill  book , 


CASH 


Ledger  Balance . , . , 
In  bank,  Stb.  No.. 
In  safe,  Currency 
In  safe.  Checks,  _ 


Total  Cash  on  hand. 


TEACHER'S 


Respectfully  submitted, 


.191.... 


STAMP 


(a) 


INVOICE  RECORD  BOOK. 


NAME  AND  ADDRESS 


AMOUNT  OP  INVOICES 


GENERAL  SPECIAL 


7^- 


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3o 


^  ^ 


i  t3-t^,  I 


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3c 


/<:>sosy 


y72^/^ 


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rg 


77^  f^ 


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-eriSi^^ 


(b) 


SINGLE  ENTRY  CASH  BOOK 


POSTED    ITEMS 


vw- 


JU^ 


/ 
/ 
/o 

3/ 

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/SfZ 


/Sf. 


777^^ 


yyffC 


2 

3 
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77f 


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2^i^<f  ys- 


226 


CAMPBELL'S  ACTUAL  ACCOUNTING 


(c) 


ORDER  BOOK  or  SALES  BOOK 


vjT 


S/  ^i 


~^F  Fi} 


^^ 


RDSTED 
/CMOUNTS 


TOTAL   SALES 


/f^Ld 


^■f^ygz 


/^.2./ 


////yft 


^37\2.<C 


163.  I.  Use  a  Voucher  Check  and  sell  to  the  Townsite  and  Trading  Company  all 
Department  E  goods  included  in  your  inventory  at  last  closing.  While  working  this  Outline, 
secure  the  Management  of  a  Branch  House  for  some  student  handling  some  line  of  goods  that 
you  do  not,  and  for  instructions  in  the  necessary  entries  detach  from  prepared  blanks  form  130. 

2.  Fill  orders  approved  by  your  teacher  at  last  closing,  selling  on  the  regular  terms  of  the 
schoolroom,  and  enter  in  the  Sales  Book  either  by  pasting  the  order  blanks  into  this  book  or  by 
copying  them,  as  your  teacher  may  direct,  but  leave  the  net  amount  of  sale  in  the  "Items"  column 
until  you  know^  when  or  how  it  will  be  paid. 

3.  If  payment  be  made  for  the  above  sales  or  for  any  of  them  before  they  are  posted  to  your 
ledger,  mark  them  Paid  in  your  sales  book  as  illustrated  in  form  of  sales  book  and  if  the  pay- 
ment be  cash,  enter  with  the  explanation  Cash  Sales  in  the  total  cash  column  of  your  cash  book. 
If  payment  be  made  by  note  for  any  of  these  sales  before  they  are  posted  to  the  ledger,  you  may 
mark  the  sale  Paid  hy  note  in  the  sales  book  and  make  a  record  of  the  note  in  your  bill  book, 
making  no  further  entry  for  either  step  in  the  transaction.  The  net  amounts  of  each  sale  thus  paid 
for  before  being  posted  will  then  be  extended  into  the  Total  Sales  column  of  the  order  book  and 
will  not  be  posted  to  the  ledger. 

4.  In  the  case  of  all  sales  that  are  not  paid  for  previous  to  posting,  enter  the  net  amount  of 
each  in  the  Posted  Items  column  of  your  order  book  and  post  to  the  debit  of  the  purchaser's 
account  in  the  ledger. 


CAMPBELL'S  ACTUAL  ACCOUNTING  227 

5.  If  payment  should  later  be  made  for  any  of  these  items  already  posted,  enter  the  cash 
received  in  the  Posted  Items  column  of  the  cash  book  and  post  to  the  credit  of  the  customer's 
account  in  the  ledger. 

6.  Enter  all  invoices  in  your  Invoice  Record  Book,  opening  accounts  in  your  ledger  with 
all  creditors. 

7.  Make  payment  for  invoices  bought  as  follows : 

(a)  Pay  all  wholesale  houses  in  cash,  taking  advantage  of  the  discounts  and  enter  in  cash 
book,  credit  side,  using  the  Posted  Items  column  and  the  Merchandise  Discount  column  very  much 
as  you  did  in  Outline  IV.  When  remitting  to  the  Spurr  Coffee  Company  and  F.  W.  Stone  & 
Co.,  write  neat  business  letters  and  enclose  also  orders  for  new  merchandise  sufficient  to  keep  up 
your  stock  to  the  original  inventory.     Mark  the  invoices,  Paid  by  Check  or  Paid  in  Currency. 

(b)  For  the  invoices  bought  from  students,  give  notes  at  30  days  and  make  entry  in  your 
journal  charging  the  payee.  Make  a  record  also  of  these  notes  in  your  bill  book,  and  in  your 
invoice  record  book  mark  the  invoices,  Paid  by  note. 

8.  Prove  Cash.  Your  cash  book  may  be  ruled  in  much  the  same  style  as  the  cash  book  in 
Outline  IV,  except  that  when  the  Posted  Items  and  Mdse.  Disct.  columns  are  added  and  carried 
into  the  ledger,  neither  the  personal  totals  nor  the  Mdse.  Disct.  contras  are  posted  to  the  ledger, 
as  in  double  entry,  but  the  personal  totals  are  carried  into  the  journal  as  instructed  in  10  (c), 
below,  and  the  contra  items  are  checked;  or  the  ruling  may  be  done  as  in  162  (b),  which  will  avoid 
the  contra  entries  for  Mdse.  Disc'ts. 

9.  Posting,  (a)  All  items  in  the  invoice  record  book  should  post  to  the  credit  of  the 
accounts  named. 

(b)  All  items  in  the  Posted  Items  column  of  the  order  book  should  post  to  the  debit  of  the 
accounts  named. 

(c)  All  items  in  the  Posted  Items  columns  and  Merchandise  Discount  columns  of  the  cash 
book  should  post  to  the  accounts  named,  exactly  as  you  posted  from  the  cash  book  in  Outline 
IV. 

(d)  All  items  in  your  journal  should  post  to  the  debit  or  credit  of  the  accounts  named  as 
designated  in  each  entry. 

10.  Now  collect  in  your  journal  the  footings  of  the  Posted  Items  columns  of  all  the  other 
books  as  follows : 

(a)  Carry   the   footing   of   the    invoice   record  book  into  the  credit  column  in  the  journal, 

below   the   last  journal   entry,    explaining   "Accounts  Payable,  Cr.,  I.   V.  B.,  page  "  and 

rule  the  column  in  the  invoice  record  book. 

(b)  Next,  take  up  the  order  book,  or  sales  book,  rule  and  foot  the  Posted  Items  column,  and 
carry  the  footing  into  the  Total  Mdse.  column  of  the  sales  book  and  also  into  the  debit  column  of 
the  journal,  explaining  Accounts  Receivable,  Dr.,  Order  Book,  page . 

(c)  Lastly,  carry  to  the  journal  columns  from  the  cash  book  the  sum  of  the  footings  of  the 
Posted  Items  and  Mdse.  Disct.  columns  on  each  side ;  that  from  the  Cash  debit  side  to  the  credit 

column  of  the  journal,  with  the  explanation.  Accounts  Receivable,  Cr.,  C.  B.  page  and 

that  from  the  Cash  credit  side  to  the  debit  column  of  the  journal,  with  the  explanation,  Accounts 
Payable,  Dr.,  C.  B.  page . 

(d)  Rule  and  add  the  columns  of  your  journal,  both  the  entries  made  therein  directly  and 
the  footings  brought  in  from  other  books,  and  the  results  should  correspond  respectively  with 
footings  of  the  debit  and  credit  columns  of  an  abstract  of  the  ledger  which  you  will  take  as 
instructed  in  161,  19.  If  any  accounts  have  been  ruled  up  in  the  ledger  since  the  last  closing,  the 
amount  which  these  ruled  accounts  diminish  the  total  of  the  abstract  of  the  ledger,  should  be 
subtracted  from  both  sides  of  the  journal  footings  before  beginning  to  enter  the  ledger  abstract. 


228 


CAMPBELL'S  ACTUAL  ACCOUNTING 


II.     Secure  your  orders  for  next  day's  trading  and  submit  with  your  books  for  your  teacher's 
approval,  with  the  duplicate  copy  of  your  daily  report  copied  neatly  into  the  form  below. 

REPORT 

Report  of  School  Duties:    I  take  bookkeeping Hours  a  day. 

Hours  worked  since  last  report ,  Absent Total No.  of  Letters  written 

No.  of  Invoices  bo't  of  wholesale  houses Of  students ,  Total 

No.  of  Payments  made  in  cash ;   in  notes ;    in    acceptances ;     Total 

No.  of  Payments  rec'd  in  cash ;   in  notes ;    in    acceptances ;     Total 

No.  of  Sales  made:     To  T.  &  T.  Co ;    to  students ;  Total  No ,  $ : 

No.  of  Entries  made Average  per  hour Time  on  trial  balance hours. 


NOTES 


Bills  Receivable,  Ledger  Balance 

Total  uncollected  in  bill  book 

Total  value  of  notes  in  the  safe . 

Bills  Payable,  Ledger  Balance 

Total  unpaid  in  bill  book 


CASH 


Ledger  Balance 

In  bank,  Stb.  No.. 
In  safe,  Currency 
In  safe,  Checks,  _ 


Total  Cash  on  hand. 


Respectfully  submitted, 


TEACHER'S 


191....  STAMP 

164.     I.     Fill  orders  approved  by  your  teacher  at  last  closing,  selling  on  the  regular  terms  of 

the  schoolroom  and  enter  in  your  sales  book  as  before. 

2.  Make  a  shipment  of  merchandise  to  some  student.  Enter  in  journal,  opening  an  account 
with  the  shipment  as  in  double  entry  but  of  course  making  no  credit  to  merchandise. 

3.  Solicit  a  consignment  of  merchandise  to  be  sold  on  commission  unless  you  have  already 
received  goods  for  sale  in  this  manner.  Make  entry  in  loose-leaf  commission  sales  book  as  in 
double  entry. 

4.  Enter    in    your    invoice    record    book    all  invoices  received  and  unentered. 

5.  Make  payments  for  invoices  bought  of  students  by  sight  draft  on  students  who  owe  you, 
as  far  as  possible  claiming  the  cash  discount  (Journal  entries). 

6.  Write  letters  to  your  wholesale  houses,  remitting  in  full  for  last  orders  less  discount  and 
enclosing  orders  for  such  new  merchandise  as  you  need  to  keep  up  your  stock,  as  required  by  the 
terms  of  the  chattel  mortgage  which  you  gave  when  you  bought  the  store. 

7.  If  payment  has  been  received  for  any  of  the  unposted  sales,  make  entry  as  instructed  in 
163,  3.  If  payment  has  been  made  for  any  sales  that  have  already  been  posted  to  your  ledger, 
make  entry  as  in  163,  5. 

8.  Pay  all  notes  which  you  owe  that  are  due.  If  any  of  the  large  notes  which  you  gave 
when  you  purchased  your  business  have  matured  and  you  have  not  sufficient  money  with  which 
to  pay  them,  consult  your  teacher  in  regard  to  borrowing  money  at  the  bank  and  arrange  to  make 
collection  of  all  outstanding  accounts.  If  these  will  not  furnish  sufficient  money  to  meet  your 
obligations,  you  must  make  an  effort  to  increase  your  business  and  must  secure  more  and  lal"ger 
orders  than  usual  for  your  future  day's  tradings. 

9.  Prove  cash  following  instructions  in  163,  8. 

10.  Post  as  instructed  in  163,  9,  a,  b,  c,  d. 

11.  Collect  in  your  Journal  the  footings  of  the  Posted  Items  of  all  the  other  books  following 
the  instructions  of  163,  10,  a,  b,  c,  d,  and  follow  with  an  abstract  of  the  ledger  taken  as  in- 
structed in  161,  19. 


CAMPBELL'S  ACTUAL  ACCOUNTING 


229 


12.  Make  a  statement  of  resources  and  liabilities  and  close  your  books  as  in  161,  13.  Remem- 
ber to  include  your  shipment  with  resources. 

13.  Secure  your  orders  for  next  day's  trading  including  a  sale  of  all  consignment  goods, 
and  noting  the  instructions  in  164,  8;  then  submit  these  orders  for  your  teacher's  approval  with 
your  books  and  a  duplicate  copy  of  the  full  report,  copied  carefully  in  the  form  below. 

165.  I.  Take  in  a  partner  who  will  invest  with  you  merchandise,  notes,  a  horse  and 
wagon  or  any  other  chattels  that  he  may  possess,  and  let  him  give  his  own  note  at  ninety  days 
for  the  balance  of  his  investment.  If  he  should  have  some  liabilities  for  the  firm  to  assume,  either 
in  the  form  of  accounts  or  notes,  it  will  be  so  much  the  better  for  your  entry.  Unless  your 
teacher  wishes  you  to  take  some  student  as  a  partner  you  will  do  well  to  again  form  a  partner- 
ship with  Mr.  E.  H.  Wemple,  to  whom  you  sold  out  in  Outline  V,  and  who  will  have  for  his 
investment  with  you  the  resources  and  liabilities  turned  over  by  you  at  that  time.  Make  entry 
for  your  partner's  investment  as  in  the  form  below. 


'_-«i^<5<-;?«^:^-^-^x»«->-^?^  <^.  ^-^^pe^- 


^^rf 


^^ 


/^//7-< 


S^y^/7^ 


Transfer  the  cash  as  above  to  the  debit  of  your  cash  book,  and  post  to  your  ledger  all 
the  items  marked  Dr.  and  Cr.  Then  compare  this  entry  with  the  opening  entry  you  made  in 
161,  8,  observing  that  in  the  above  entry  the  personal  debits  and  credits  are  posted  from  the  items 
of  the  investor's  entry  instead  of  being  entered  separately  as  in  161,  8;  and  the  investor's  net  credit 
only  is  posted  instead  of  posting  his  debit  and  credit  separately.  Post  the  personal  items  of  this 
entry  to  two  Petty  Accounts,  one  in  the  customers'  ledger  and  one  in  the  creditors'.  Petty  Ac- 
counts Payable  would  then  appear  as  follows: 


7<^f7^ 


230 


CAMPBELL'S  ACTUAL  ACCOUNTING 


Note. — Petty  accounts  (usually  Petty  Accounts  Receivable)  are  opened  in  any  business  when  it  is  not  ex- 
pected that  there  will  be  continued  dealings  with  the  persons  or  firms  included  in  the  entry.  When  payment 
is  made  the  amount  of  payment  is  posted  to  the  opposite  side  of  the  account  on  the  same  line  with  the  first 
entry,  not  on  the  first  vacant  line  on  that  side  of  the  page  as  in  other  posting. 

2.  Fill  orders  approved  by  your  teacher  at  last  closing. 

3.  Render  account  sales  of  all  consignments.  Observe  that  your  records  in  the  consignment 
ledger  will  be  as  in  double  entry.  But  since  you  keep  no  loss  and  gain  accounts  in  single  entry, 
you  will  have  no  accounts  with  commission,  storage  and  similar  charges,  and  will  make  but  one 
entry  in  the  cash  book  Totals  column  for  the  amount  of  your  remittances,  whether  by  check  or 
draft.  Observe  carefully,  in  taking  an  abstract  of  your  ledger  for  proof  purposes,  to  what  extent 
the   consignment   ledger  is  taken  into   consideration. 

4.  Enter  all  invoices  received  and  unentered. 
Make  payment  for  invoices  bought  by  cash,  notes,  or  sight  drafts  as  may  be  convenient 


.      5- 
to  you 
6. 
book. 


Pay  all  your  notes  that  are  matured,  making  entry  in  the  Total  Cash  column  of  your  cash 
If  there  be  interest  on  these  notes,  include  it  in  the  cash  book  entry  using  one  line  only  for 
the  amount  paid  and  explaining.  Paid  note  and  Interest.  Be  careful  to  mark  these  notes  paid 
in  your  bill  book. 

7.  Pay  some  note  which  you  owe  that  is  not  due,  securing  a  discount.  Make  entry  in  cash 
book  as  in  preceding  transactions,  observing  that  the  entry  will  be  for  the  amount  of  cash  paid, 
not  for  the  face  of  the  note.    Compare  this  with  double  entry  as  illustrated  in  previous  work. 

8.  Collect  all  bills  receivable  which  you  hold  that  are  matured,  with  interest  from  date. 
Make  entry  in  total  column  of  the  cash  book  and  mark  the  notes  paid  in  your  bill  book. 

9.  Unless  otherwise  instructed  by  your  teacher,  discount  at  the  bank  all  the  notes  which  you 
hold  that  are  not  due.  Make  entry  in  the  cash  book  for  the  amount  of  cash  received.  Turn  to 
your  Bill  Book  and  mark  these,  Discounted  at  Bank. 

10.  Detach  from  your  prepared  blanks  Forms  131,  132,  133  and  134,  and  make  payment  at 
office  or  teacher's  desk.  The  first  items  being  expense  items,  the  only  entries  are  cash  book 
entries  in  the  Total  column.  The  bill  presented  in  133  is  a  charge  to  your  personal  (private) 
account. 

11.  Post.  Collect  the  footings  of  Posted  Items  columns  into  your  journal  and  prove  the 
abstract  of  your  ledger.    Rule  this  work  neatly  as  in  former  daily  closing, 

12.  Take  separate  inventories  of  merchandise,  chattels,  office  furniture,  and  other  property 
in  your  possession  and  make  out  a  statement  similar  to  the  statement  made  in  161,  19,  except 
that  the  loss  or  gain  will  be  divided  between  yourself  and  your  partner,  making  the  latter  part  of 
that  statement  appear  as  in  the  form  below. 


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CAMPBELL'S  ACTUAL  ACCOUNTING  231 

166.  I.  Post  the  loss  or  gain  shown  by  the  above  statement  to  the  respective  partners* 
accounts.     This  finishes  the  closing  of  your  books.    Now  proceed  to  verify  your  records. 

2.  The  first  step  in  verifying  records  will  be  to  prove  merchandise.  As  your  invoice  rec- 
ord book  and  sales  book  furnish  you  the  total  amount  of  sales  and  purchases  and  as  you  have 
complete  records  of  inventories  and  itemized  vouchers  for  all  sales  and  purchases,  you  will  be  able 
to  make  out  your  expert  report  and  prove  your  merchandise  as  in  former  double  entry  work. 
Complete  this  proof  and  if  it  does  not  discover  all  probable  errors,  proceed  as  below. 

3.  (a)  Take  one  of  the  large  proof  sheets  of  merchandise  and  arranging  columns  in  pairs, 
as  debit  and  credit,^  proceed  to  enter  in  the  first  horizontal  line  across  the  page  all  resources  and 
liabilities  as  shown  by  your  statement  at  last  closing. 

(b)  Take  up  your  journal  transactions,  carefully  supplying  the  missing  half  as  if  each  were 
a  double  entry.  Thus  if  your  journal  entry  credits  a  customer  for  a  note  you  will  enter  the  credit 
in  the  columns  marked  Accounts  Receivable  and  a  corresponding  debit  in  the  columns  marked 
Bills  Receivable,  etc.,  aggregating  wherever  you  can  items  that  are  alike  until  all  journal  items 
are  transferred  in  totals,  to  the  proof  page.  Take  a  trial  balance  of  your  proof  page.  If  you 
have  performed  the  above  work  correctly  it  will  balance  the  same  as  a  ledger.     If  it  does, — 

(c)  Take  up  the  invoice  record  book.  Enter  in  the  debit  of  the  Merchandise  columns 
total  amount  of  merchandise  bought.  Place  in  the  credit  of  Accounts  Payable  all  that  was  bought 
on  account ;  in  the  credit  of  Cash,  the  total  of  bills  paid  in  cash ;  and  in  the  credit  of  Bills  Payable, 
the  total  of  those  for  which  you  gave  notes  or  accepted  drafts.    Again  your  proof  should  balance. 

(d)  Proceed  in  like  manner  with  your  sales  book,  obtaining  therefrom  a  credit  for  merchan- 
dise and  a  corresponding  debit  for  Accounts  Receivable,  Bills  Receivable  or  Cash. 

(e)  From  your  cash  book,  debit  side,  take  a  cash  debit,  balancing  it  with  credits  to 
Accounts  Receivable,  Bills  Receivable  or  other  accounts  as  may  be  shown  by  the  cash  book 
entries  that  are  not  already  included  under  the  instructions  above.  Observe  that  you  are  to  omit 
from  the  cash  debit,  items  already  included  in  the  proof  of  other  books.  Proceed  in  like  manner 
with  the  cash  book  credit  side  and  again  trial  balance  your  proof. 

4.  Reduce  this  trial  balance  to  a  statement  of  losses  and  gains  and  resources  and  liabilities. 
The  latter  should  be  identical  with  the  resources  and  liabilities  of  your  statement  in  165,  10.  or 
should  show  you  your  errors.  In  preparing  this  statement  of  resources  and  liabilities  be  sure  to 
have  your  personal  accounts  grouped  into  Accounts  Receivable  and  Payable  as  in  the  opening 
entry  of  Outline  IV. 

167.  To  Change  Books  to  Double  Entry. 

Open  an  account  in  your  ledger  for  each  item  of  the  preceding  Resources  and  Liabilities 
Statement  which  is  not  already  represented  by  a  ledger  account.  Post  from  this  statement,  to 
the  accounts  just  opened,  all  the  unposted  items  of  the  statement,  and  proceed  to  take  a  trial 
balance  as  in  former  double  entry  work.  When  this  balance  proves,  your  books  are  success- 
fully changed  to  double  entry.  Submit  all  your  books  to  your  teacher  for  grading  with  orders 
for  your  next  day's  business  that  will  dispose  of  all  the  merchandise  that  you  have  on  hand  and 
entered  in  your  books  (except  Dep't  E  goods),  submitting  also  the  usual  duplicate  of  your  full 
report,  a  copy  of  which  you  will  carefully  enter  below. 

REPORT 

Report  of  School  Duties:    I  take  bookkeeping Hours  a  day. 

Hours  worked  since  last  report ,  Absent Total No.  of  Letters  written 

No.  of  Invoices  bo't  of  wholesale  houses Of  students ,   Total 

No.  of  Payments  made  in  cash ;   in  notes ;    in    acceptances ;     Total 

No.  of  Payments  rec'd  in  cash ;   in  notes ;    in    acceptances ;     Total 


1,     Instead  of  debit  and  credit  columns  the  student  may  use  red  and  black  ink  as  in  the  proof  in  161,  18,  (d), 
which  will  be  a  valuable  guide  in  making  this  proof. 


232 


CAMPBELL'S  ACTUAL  ACCOUNTING 


No.  of  Sales  made:     To  T.  &  T.  Co „;   to  students ;  Total  No ,  $ 

No.  of  Entries  made Average  per  hour Time  on  trial  balance hours. 


NOTES 


JBills  Receivable,  Ledger  Balance 

Total  uncollected  in  bill  book , 

Total  value  of  notes  in  the  safe 

Bills  Payable,  Ledger  Balance  . . . , 
Total  unpaid  in  bill  book 


CASH 


Ledger  Balance 

In  bank,  Stb.  No.. 
In  safe,  Currency 
In  safe.  Checks,  _ 


Total  Cash  on  hand. 


MERCHANDISE 

Department  A 
Goods 

Department  E 
Ooods 

TEACHER'S  MARKING 

Cost  of  Mdse.  bought 

Accuracy .  .• 

Neatness 

Orderliness 

3 
2 
2 
2 
1 

Present  i  nventory 

Cost  of  goods  sold  

Sales  of  merchandise 

Records  

Gain,  red  ink ;  IJoss,  black. . . . 

Progress 

Errors:  Ourfvr.red;  cont.  black 

Averacre 

Respectfully  submitted, 


.191.... 


TEACHER'S 


STAMP 


OUTLINE  VIL 

i68.  I.  Do  not  make  an  opening  entry  in  your  books  at  the  present  time.  As  has 
been  explained  previously,  when  business  is  continuous  and  especially  when  continued  in  the 
same  set  of  books  there  is  no  occasion  for  an  opening  entry  at  any  time  after  the  beginning 
of  the  business;  and  the  changes  of  business  that  have  been  given  you,  and  the  opening  entries 
that  have  been  required  of  you,  have  been  for  purposes  of  practice.  At  this  time  your  practice 
will  be  in  continuing  the  work  in  the  old  books  without  any  formal  opening  entry  to  mark 
the  beginning  of  this  Outline.  In  continuing  your  business  records  in  double  entry  form  in 
the  books  which  you  have  been  using  for  single  entry,  it  will  be  necessary  to  make  some  slight 
modifications  in  method  of  using  the  books. 

(a)  Use  your  cash  book  as  you  did  while  working  Outline  IV,  using  the  Posted  Ac- 
counts columns  for  Customers'  and  Creditors'  Ledger  columns  respectively,  and  the  Total 
Cash  column  for  General  Ledger.  You  have,  perhaps,  observed  while  working  single  entry, 
especially  in  making  entry  for  prepared  blank  form  133,  that  all  items  posted  in  single  entry  were 
entered  in  the  columns  that  in  Outline  IV  were  reserved  exclusively  for  personal  accounts. 
Such  items  now  go  into  the  General   Ledger  column  when  not  personal. 

(b)  Rule  your  sales  book  completely  and  post-check  the  total  of  merchandise  footing  as 
that  has  now  been  carried  to  your  ledger  in  the  change  to  double  entry  and  will  not  be  carried 
forward  farther  in  the  sales  book. 

(c)  You  will  make  entries  in  your  invoice  record  book,  and  will  post  the  items  to  the 
credit  of  each  personal  account  as  you  did  in  single  entry,  posting  also  the  footing  or  total  of 
merchandise  bought  to  the  debit  of  Merchandise  and  the  credits  of  Accounts  Payable  in  the  gen- 
eral ledger  as  you  posted  from  the  invoice  book  kept  in  Outline  IV. 


CAMPBELL'S  ACTUAL  ACCOUNTING  233 

(d)  The  Journal  might  be  dispensed  with  as  was  done  in  Outline  V,  but  in  view  of  the 
fact  that  it  is  the  best  book  in  which  to  study  the  debit  and  credit  relations  of  entries,  and 
that  the  work  of  this  Outline  will  present  a  number  of  new  entries  for  you  to  study,  we  will 
retain  the  journal,  using  it  as  in  Outline  IV. 

2.  Make   entry  for  all   invoices   of   merchandise  that  have  been  received  and  not  entered. 

3.  Fill  orders  approved  by  your  teacher  at  former  closing,  selling  all  merchandise  on  hand 
except  Department  E  goods.  If  your  orders  do  not  include  all  wholesale  stock  on  hand  and 
entered,  secure  additional  orders  to  dispose  of  all  your  stock  and  present  them  to  your  teacher 
for  approval  before  filling. 

4.  Make  a  sale  to  the  Townsite  and  Trading  Company  of  all  Department  E  goods  in  your 
possession,  billing  them  on  account  subject  to  draft. 

5.  (a)  Detach  from  your  prepared  blanks  form  135,  observing  that  it  is  a  letter  from  the 
Associated  Offices.  Reply  to  this  letter  accepting  the  proposition  and  place  your  reply  in  en- 
velope of  papers  to  be  submitted  to  your  teacher  with  your  books,  filing  the  letter  of  the  As- 
sociated Offices  in  your  letter  file.     Then 

(b)  Detach  from  prepared  blanks  form  136.  Observe  that  it  is  an  order  from  the  Asso- 
ciated Offices  directing  their  selling  agency  at  College  Center  to  supply  you  with  the  goods  of 
certain  firms  at  the  special  discounts  offered  you  in  their  letter. 

6.  Prepare  four  orders  for  merchandise,  addressing  one  to  each  of  the  four  companies 
with  which  you  are  to  have  dealings  and  ordering  in  each  case  the  full  quantity  of  goods  per- 
mitted by  the  schoolroom  "limit"  as  per  your  contract  with  the  Associated  Offices.  Forward 
these  orders  to  the  College  Commercial  Company,  addressing  a  letter  to  the  Commercial  Com- 
pany in  which  you  will  state  that  you  are  enclosing  them  herewith  four  orders  for  merchan- 
dise from  companies  represented  by  them,  accompanied  with  a  letter  granting  you  special  dis- 
counts on  all  these  goods.  Ask  them  to  please  give  the  matter  their  prompt  attention  and  bill 
goods  accordingly,  on  60  days  with  usual  cash  discounts. 

7.  You  will  observe  that  while  this  special  proposition  from  the  Associated  Offices  will 
give  you  an  opportunity  to  make  a  great  deal  more  money  than  you  have  been  making  in  any 
previous  business,  it  will  also  require  the  employment  of  more  capital.  The  orders  you  have 
just  placed  being  probably  very  much  in  excess  of  your  cash  on  hand,  it  will,  therefore,  be 
necessary  that  you  devise  some  way  of  increasing  your  capital.  This  might  be  done  by  taking 
in  another  partner  (or  several  partners)  as  you  have  done  on  previous  occasions ;  but  the  loose 
methods  of  management  which  partnership  necessarily  permits  and  the  unlimited  liability  of 
partners  in  general  to  third  parties,  argues  in  favor  of  the  incorporation  of  your  business,  and 
the  increasing  of  your  capital  by  selling  stock. 

8.  With  this  in  view  you  may 

(a)  Clear  your  books  of  all  dead  and  ficticious  personal  accounts  by  collecting  those  that 
owe  you  and  paying  those  that  you  owe  at  the  teacher's  desk.  These  will  include  all  items  of 
Petty  accounts. 

(b)  Post ;  prove  all  accounts  and  records ;  take  trial  balance ;  make  out  balance  sheet ; 
and  close  books  preparatory  to  the  organization  of  a  corporation. 

9.  When  all  work  is  completed  as  instructed  in  8  preceding,  secure  orders  for  another  day's 
trading  large  enough  to  dispose  of  most  of  the  goods  purchased  and  submit  them  to  your  teacher 
with  your  books  for  approval,  accompanied  by  the  usual  duplicate  report  carefully  copied  into 
the  form  below. 

REPORT 

Report  of  School  Duties:    I  take  bookkeeping Hours  a  day. 

Hours  worked  since  last  report ,  Absent Total No.  of  Letters  written 

No.  of  Invoices  bo't  of  wholesale  houses Of  students ^ ,  Total 


234 


CAMPBELL'S  ACTUAL  ACCOUNTING 


No.  of  Payments  made  in  cash ;   in  notes ;    in    acceptances ;     Total 

No.  of     Payments  rec'd  in  cash ;    in  notes ;    in   acceptances ;    Total... 

No.  of  Sales  made:     To  T.   &   T.   Co ;    to  students ;  Total  No ,  $ 

No.  of  Entries  made Average   per  hour Time  on  trial  balance hours. 


NOTES 

CASH 

Bills  Receivable,  Ledger  Bala 

nee 

Ledger  Balance 

In  bank,  Stb.  No.         ,  

Total  value  of  notes  in  the  safe. 
Bills  Bay  able,  Ledger  Balance 
Total  unpaid  in  bill  book 

In  safe.  Currency 

In  safe,  Checks, 

1 

Total  Cash  on  hand Il .  .               ■ 

MERCHANDISE 

Department  A 
Goods 

Department  E 
Goods 

TEACHER'S  MARKING 

Cost  of  Mdse.  bought 

Accuracy 

3 
2 
2 
2 
1 

Present  1  n  ventory 

Neatness 

Orderliness 

Cost  of  goods  sold  

Sales  of  merchandise 

Records  

Gain,  red  ink ;  Loss,  black 

Progress 

Errors:  Ourfvr.red;  cont. black 

Average 

169  (a) 


INVOICE   RECORD  BOOK. 


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CAMPBELL'S  ACTUAL  ACCOUNTING 


235 


(c)  You  will  need  for  the  regular  business  of  this  Outline  a  new  form  of  invoice  record 
book  and  similar  form  of  sales  book  (see  form  of  invoice  record  in  169).  Then  readjust 
sheets  of  your  loose-leaf  books  of  original  entry  to  insert  pages  of  these  two  books  following 
the  invoice  record  and  sales  book  pages  respectively  of  Outline  VL  You  will  also  need  a  number 
of  specially  ruled  stock  record  books.  Except  in  speculative  stocks  in  large  companies  where 
there  is  much  buying  and  selling  of  the  stock,  record  blanks  are  usually  bound  into  one  book 
and  in  this  form,  they  are  furnished  for  your  work.  They  will  consist  of  a  Stock  Subscription 
book  and  Installment  book  combined  arranged  for  the  payment  of  stock  in  two  installments 
(the  book  might  be  planned  for  any  number  of  installments),  a  Certificate  Book,  a  Stock 
Ledger,  and  a  Dividend  Book.  A  Stock  Transfer  Book  is  often  used  for  the  purpose  of  mak- 
ing a  permanent  record  of  the  transfer  of  stock,  but  in  your  work  this  book  will  be  omitted, 
the  record  of  transfer  being  kept  in  the  stub  of  the  certificate  book.  A  Stock  Journal  is  an- 
other book  frequently  used  for  keeping  a  consecutive  record  of  all  stock  certificates  issued  and 
cancelled,  the  items  of  this  record  being  transferred  to  the  stock  ledger.  It  is,  however,  quite 
practical,  though  it  would  not  be  as  convenient  in  handling  the  stocks  of  a  company  where  there 
was  much  buying  and  selling,  to  transfer  the  record  of  certificates  issued  and  cancelled  directly 
from  the  stub  of  the  Certificate  Book  to  the  Stock  Ledger 


INVOICE  RECORD  BOOK, 


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(d) 


CAMPBELL'S  ACTUAL  ACCOUNTING 

Stock  Subscription  and  Instalment  Book. 


We  the  underaiffned  hereby  subscribe  for  and  a^ree  to  take  the  number  of  shares  of  stock 
In  the  Peoples'  Telephone  and  Telegraph  Company  set  opposite  our  respective  names  and 
to  pay  for  the  sajne  at  the  par  value  of  FIVE  DOLLARS  per  share,  one-half  of  said  payment  to  be 
made  on  the  completion  of  the  organization,  and  one-half  in  six  months  thereafter. 


FIRST 
INSTALMENT 

OF  50% 


SECOND 
INSTALMENT 

OF  F.07,, 


SIGNATURES  OF  SUBSCRIBERS 


WHEN   PAID 


WHEN  PAID 


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.  1 

Cert,  tiaued                 Ort.  Cuicelled 

Balance 

of  Share* 

Held 

EXPLANATION  OP 
TRANSACTION 

R«f. 

SUBSCRIBED 

No. 

ShBi«s 

No. 

Shares 

Shares 

Value 

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(f) 


Dividend  No 


of 


%  Declared 


19 


STOCKHOLDERS-    NAMES   AND   ADDRESSES 


(g)     When  stock  companies  are  organized  for  the  purpose  of  pushing  some  ordinary  mercan- 
tile business,  the  fewer  the  books  used,  and  the  simpler  the  method  followed  in  keeping  the 


CAMPBELL'S  ACTUAL  ACCOUNTING 


237 


238  CAMPBELL'S  ACTUAL  ACCOUNTING 

ably  be  not  less  than  $20,000.  When  your  Articles  of  Incorporation  are  correctly  filled  out, 
they  should  be  signed  by  yourself  and  partner,  or  partners,  and  by  two  or  three  other  persons 
who  expect  to  become  stockholders  in  your  corporation.  These  signatures  should  be  acknowl- 
edged before  a  notary  after  which  the  paper  may  be  filed  at  your  teacher's  desk.^ 

2.  (a)  Open  your  Subscription  Book.  Each  member  of  the  old  partnership  should  sub- 
scribe for  enough  capital  stock  to  cover,  approximately  at  least,  his  interest  in  the  partnership 
and  he  may  subscribe  for  as  much  more  as  he  is  able  personally  to  pay  for.  You  may  subscribe 
for  a  little  more  than  your  partnership  interest  and  Mr.  Wemple,  or  whoever  is  your  partner  at 
this  time,  may  subscribe  for  a  little  less.  Your  teacher  will  sign  for  Mr.  Wemple  as  in  for- 
mer work.  Secure  other  subscriptions  until  you  have  five^  or  six  stockholders  but  do  not  dis- 
pose of  all  your  capital  stock.     Leave  some  to  be  sold  later. 

(b)  Observe  that  each  subscriber  must  write  his  own  name  in  the  Subscription  Book, 
this  being  his  agreement  to  take  the  shares  of  stock  specified.  When  3/ou  have  secured  as  many 
subscriptions  as  you  desire,  you  may  fill  the  column  entitled  Certificate  Number  with  consecu- 
tive numbers,  one  after  each  subscriber's  name,  and  at  your  leisure  may  write  up  the  certificates 
and  stubs  in  the  certificate  book  (omitting  dates)  ready  for  the  signatures  of  the  officers  of 
the  company  when  the  certificate  is  to  be  issued.  You  will  not  issue  certificates  until  the  stock 
is  fully  paid,  which  means  not  until  the  second  installment  of  subscriptions  is  collected.  The 
principal  advantage  in  assigning  certificates  to  the  subscribers  in  the  order  of  their  subscrip- 
tion, is  that  the  certificate  stubs  will  be  numbered  in  the  same  order  as  the  stockholders' 
names  in  the  subscription  book.  Otherwise  any  subscriber  who  would  be  first  to  make  full 
payment  of  his  stock  would  be  entitled  to  Certificate  No.  i  and  any  other  in  the  list  might  in 
the  same  way  become  entitled  to  No.  2. 

(c)  Omitting  all  the  legal  details  of  the  organization,  you  may  assume  that  you  have  been 
elected  president  of  the  company  and  that  your  former  partner  has  been  elected  secretary.  Or 
since  your  duties  as  bookkeeper,  etc.,  will  more  nearly  coincide  with  those  of  the  secretary  you 
may  reverse  the  assumption  and  use  your  partner's  name  as  that  of  president  and  your  own 
as  secretary.  The  principal  stockholder  is,  however,  usually  the  president.  If  Mr.  Wemple  is 
one  of  your  stockholders  let  him  hold  one  of  these  offices  and  to  save  your  teacher  the  time  re- 
quired to  affix  Mr.  Wemple's  signature  to  the  necessary  papers,  he  may  if  he  sees  fit  delegate 
that  authority  to  you. 

3.  Since  some  of  the  features  of  your  business  as  a  special  selling  agency  will  necessitate, 
in  part  at  least,  a  new  set  of  books,  you  will  proceed  to  make  such  entries  as  would  be  necessary 
in  closing  entirely  the  partnership  books,  to  be  followed  later  by  a  set  of  entries  opening  new 
books  for  the  corporation.  The  closing  entries  will  be  made  in  your  journal  and  will  be 
similar  to  the  entries  made  at  the  dissolution  of  your  partnership  in  157-158. 

(a)  Debit  the  new  company  by  name  and  credit  the  accounts  that  make  up  the  resources 
of  the  partnership  as  per  last  statement.  Explain  Your  surname  here  Commercial  Company 
is  charged  for  resources  of       Name  of  your  partnership  tiim  ed  over  to  said  company  at  organization. 

(b)  Credit  the  new  company  and  charge  the  accounts  that  make  up  the  partnership  lia- 
bilities including  the  partner's  stock  accounts,  explaining  Your  surname  here  Commercial  Com- 
pany is  credited  for  liabilities  of  Name  of  Partnership  assumed  by  them  at  organisation  and  for  the 
partners'  stock  accounts  for  zvhich  the  partners  are  to  receive  compensation  in  the  stock  of  the  company 
or  in  cash. 


1.  State  law  prescribes  where  these  articles  are  to  be  filed,  usually  with  the  secretary  of  state,  who 
grants  permission  (usually  by  issuing  a  certificate)  authorizing  the  persons  filing  the  Articles  to  open  a  sub- 
scription book  for  the  sale  of  the  stock  of  the  company. 

2.  The  law  in  some  states  requires  at  least  five  stockholders.  In  other  states,  organization  is  permitted 
with  three. 


CAMPBELL'S  ACTUAL  ACCOUNTING  -  239 

(c)  Endorse  all  notes  held  by  the  partnership  in  favor  of  the  company.  Make  out  state- 
ments against  all  your  accounts  receivable  in  the  name  of  your  partnership,  accompanying  each 
with  a  statement  of  the  organization  of  the  new  company  and  requesting  a  settlement  by  check 
in  its  favor.  Then  write  out  and  hand  to  your  teacher  an  announcement  to  the  effect  that  the 
firm  of  Your  firm  name  here  has  incorporated  under  the  name  of  Your  surname  Commer- 
cial Company  and  that  the  new  company  will  assume  and  pay  all  debts  of  the  partnership  and  is 
authorized  to  collect  the  liabilities.  This  should  be  signed  both  by  the  partnership  signatures 
and  by  the  signatures  of  your  corporation  by  its  president.  You  should  also  attach  a  corpora- 
tion seal^  as  evidence  of  the  signature  of  the  corporation. 

(d)  Post  the  entries  made  above  and  rule  all  accotmts.  This  should  TEACHER'S 
entirely  close  the  books  of  your  partnership.  Submit  to  your  teacher  all 
your  books  in  which  you  have  made  entries  since  last  closing  for  criticism 
and  approval  and  when  he  has  placed  his  stamp  in  the  form  to  the  right, 
you  will  proceed  to  open  books  for  the  new  corporation  as  suggested  be- 
low. 


STAMP 

171.  I.  To  open  books  for  your  corporation,  enter  in  the  wide  column  of  your  journal 
the  following  memoranda,  Your  surname         Commercial    Company    has    this    day    been    organised 

to  succeed  the  partnership  known  as     Your  partnership  name its   capital  stock   being  oivned 

and  subscribed  as  follozvs.  Then  debit  Subscriptions  for  the  total  value  of  shares  subscribed, 
itemizing  beneath  the  title.  Subscriptions,  the  names  of  the  subscribers  and  the  amount  which 
each  has  subscribed.  Beneath  the  itemized  debit  to  Subscriptions,  debit  Treasury  Stock  for  total 
value  of  the  unsold  shares  and  complete  the  entry  by  crediting  Capital  Stock  for  the  amount  of 
the  capital  of  the  company.  The  entry  should  balance  as  any  journal  entry.  In  posting  the 
part  of  this  entry  pertaining  to  Subscriptions,  post  the  separate  amounts  subscribed,  writing  the 
name  of  each  subscriber  in  the  wide  column  and  omitting  one  line  between  each  name,  giving 
the  account  the  form  of  petty  accounts  receivable  (see  165,  i)  and  leaving  room  for  two  credits, 
amounts  paid  on  installments. 

2.  Debit  the  resources  taken  from  the  partnership  books  for  their  respective  amounts  and 
credit  the  liabilities,  making  an  additional  credit  to  Subscriptions  (itemized)  for  the  amount  of 
each  partner's  interest  that  is  subscribed  in  stock,  and  giving  either  partner  credit  on  personal 
account  (the  same  as  any  other  personal  account  credit)  for  any  balance  of  partnership  inter- 
est that  exceeds  the  amount  of  his  stock  subscription.  See  that  these  entries  balance.  Then 
explain.  The  above  resources  and  liabilities  are  transferred  from   the  books  of  Your  firm  name 

to  the  books  of   Your  Surname Commercial  Company. 

Open  an  account  with  Capital  Stock  on  a  new  page  toward  the  back  of  your  general  ledger ; 
on  the  page  following,  open  an  account  with  Subscriptions ;  follow  this  on  the  next  page  with 
Treasury  Stock ;  leave  the  page  following  Treasury  Stock  blank  until  further  instructions  and 
arrange  pages  for  your  general  ledger  resources  and  liabilities  to  suit  yourself,  being  methodical 
in  your  arrangement  and  following  in  general  the  order  given  in  the  first  opening  of  your  books. 

3.  Collect  the  first  installment  of  subscription  in  cash  from  all  subscribers  except  the  partners 
and  give  receipts  therefor,  making  entry  to  the  credit  of  Subscriptions  in  the  cash  book  and  in  the 
First  Installment  column  in  the  subscription  book.  Also  at  this  time  indicate  in  the  subscription 
book  the  settlement  of  all  installments  of  the  partners'  subscriptions  so  far  as  the  amount  of  their 
partnership  interest  is  large  enough  to  cover  thesubscription.  This  under  the  instructions  given 
in  170,  2,  will  credit  your  partner's  installment  in  full  and  will  credit  your  installments  to  the  extent 
of  your  partnership  interest.  How  nearly  the  installments  of  your  subscription  are  covered  by 
your  partnership  interest  depends,  of  course,  upon  the  number  of  shares  for  which  you  subscribed. 

4.  Open  in  your  stock  ledger  an  account  with  each  subscriber,  posting  thereto  from  the  sub- 
scription book  as  a  debit  the  amount  each  has  subscribed  and  as  a  credit  or  credits  the  amount  or 
one  for  each  installment. 


1.  A  corporation  seal  is  usually  a  die  that  stamps  into  the  paper  the  full  name  of  the  corporation.  The 
name  of  the  company  is  signed  by  its  president  or  secretary  or  both,  or  by  some  one  else  specially  delegated 
to  act  for  it,  this  authority  being  specially  granted  at  a  lawfully  held  meeting  of  the  directors  and  duly 
entered  in  the  minutes. 


240 


CAMPBELL'S  ACTUAL  ACCOUNTING 


5.  Since  one  at  least  of  the  partners  has  paid  for  his  stock  in  full  by  his  partnership  interest 
(which  should  now  be  shown  by  the  record  in  the  stock  ledger),  you  will  immediately  issue  him 
a  certificate  of  stock,  transferring  the  stub  record  to  the  column  marked  Certificates  Issued  in  the 
stock  ledger. 

6.  Fill  the  orders  approved  by  your  teacher  at  your  last  report.  Make  entry  in  your  sales 
book  using  but  a  single  line  for  each  sale  and  carefully  filling  and  referring  to  the  order  blanks, 
which  you  will  file  in  the  proper  compartment  of  your  filing  case  to  complete  the  sales  record. 

7.  Make  entry  for  all  invoices  received,  entering  invoices  from  the  wholesale  houses  in  the 
new  Invoice  Record  Book  and  invoices  of  Department  E  goods  (bought  from  students)  in  the 
Invoice  Book  used  while  working  Outline  IV.  If  the  pages  of  this  Invoice  Book  should  be  full, 
you  can  use  pages  of  the  Invoice  Record  Book  used  with  Outline  V^I. 

8.  (a)  Make  payment  for  all  invoices  received,  giving  notes  or  accepting  drafts  where  de- 
sired and  in  other  cases  making  such  payment  as  you  see  fit  according  to  the  terms  of  the  invoice. 

(b)  Make  payment  for  all  your  notes  or  acceptances  that  have  matured,  making  entry  in 
your  cash  book  as  in  former  work,  a  matter  that  should  be  perfectly  familiar  to  you  at  this  stage 
of  your  progress. 

9.  Make  entry  for  all  payments  received,  whether  payments  for  goods  sold  or  for  notes  or 
acceptances,  making  the  entry  in  your  cash  book  as  in  former  work. 

10.  Make  remittance  to  the  College  Commercial  Company  for  goods  bought  according  to  the 
terms  of  the  respective  invoices,  and  if  you  have  not  sufficient  cash  consult  with  your  teacher  and 
make  arrangements  to  borrow  at  the  College  Bank  such  a  sum  of  money  as  will  enable  you  to  take 
advantage  of  the  cash  discounts  of  your  bills,  while  waiting  for  collections  on  your  sales.  The  note 
which  you  give  the  bank  should  be  in  joint  and  several  form,  signed  by  yourself  and  some  other 
student  acceptable  to  your  teacher  and  the  bank.  Your  teacher's  approval  of  this  form  will  be 
indicated  by  his  stamp  when  the  paper  is  presented  to  be  vised.  In  the  same  letter  in  which  you 
enclose  cash  remittances  for  your  wholesale  houses  (you  need  write  but  one  letter  at  this  time,  ad- 
dressing it  to  the  College  Commercial  Company  as  the  representative  of  the  four  houses  with 
which  you  are  dealing)  you  will  include  one  additional  order  for  each  of  the  four  houses,  making  it 
as  large  as  the  school  "limit"  will  permit,  but  not  omitting  the  sam6  ticket  from  two  consecutive 
orders. 

11.  Detach  from  Prepared  Blanks  Form  137  and  pay  at  the  office  or  teacher's  desk. 

12.  Post,  prove  cash  and  notes,  make  bank  deposit  and  trial  balance  your  books.  Then  se- 
cure orders  for  your  next  day's  trading,  making  it  a  point  to  include  in  each  order  some  of  the 
goods  of  each  of  the  companies  whose  goods  you  are  handling  and  submit  these  orders  to  your 
teacher  for  approval,  together  with  your  books  and  a  duplicate  copy  of  your  daily  report  neatly 
copied  into  the  form  below. 

REPORT  V 

Report  of  School  Duties:    I  take  bookkeeping Hours  a  day. 

Hours  worked  since  last  report ,  Absent Total No.  of  Letters  written 

No.  of  Invoices  bo't  of  wholesale  houses Of  students ,   Total 

No.  of  Payments  made  in  cash ;   in  notes ;    in    acceptances ;     Total 

No.  of  Payments  rec'd  in  cash ;   in  notes ;    in    acceptances ;     Total 

No.  of  Sales  made:     To  T.  &  T.  Co ;   to  students ;  Total  No ,  $ 

No.  of  :^ntries  made Average   per  hour Time  on  trial  balance hours. 


NOTES 


Bills  Receivable,  Ledger  Balance 

Total  uncollected  in  bill  book , 

Total  value  of  notes  in  the  safe . 

Bills  Payable,  Ledger  Balance 

Total  unpaid  in  bill  book , 


CASH 


Ledger  Balance 

In  bank,  Stb.  No.. 
In  safe,  Currency 
In  safe,  Checks,  _ 


Total  Cash  on  hand. 


CAMPBELL'S  ACTUAL  ACCOUNTING  241 


TEACHER'S 

Respectfully  submitted, 


191 ... .  STAMP 

172.  I.  Draw  a  draft  at  30  days  on  the  Townsite  and  Trading  Co.  for  the  amount  of  your 
last  sale  of  merchandise  and  discount  it  at  your  bank. 

2.  Fill  orders  approved  by  your  teacher  at  last  report. 

3.  Sell  some  of  your  treasury  stock,  at  a  premium  if  possible,  and  if  not,  at  a  discount.  Have 
purchaser  sign  the  subscription  book  and  collect  the  first  installment  and  the  premium  in  cash.  If 
the  stock  be  sold  at  a  discount,  it  would  be  good  business  to  leave  all  discount  to  come  out  of  the 
second  installment,  but  for  the  sake  of  getting  the  entry  at  this  time,  you  may  take  at  least  half  the 
discount  out  of  the  first  installment.  Give  the  purchaser  a  receipt  for  the  payment  as  in  transac- 
tions with  other  stockholders.  Since  you  sell  at  a  premium  or  discount,  you  will  need  to  open  an 
account  for  the  amount  of  premium  or  discount  as  the  credit  to  Treasury  Stock  must  be  at  par 
value.  Make  entry  in  your  journal  debiting  Subscriptions  and  crediting  Treasury  Stock  for  the 
par  value  of  the  shares  sold.  In  debiting  subscriptions,  remember  to  use  the  name  of  the  stock- 
holder as  a  sub-entry  title  exactly  as  in  preceding  sales  of  stock.  Now  make  entry  in  the  cash  book 
crediting  Subscriptions  for  the  amount  of  the  first  installment  and  Stock  Commissions  (if  the  stock 
was  sold  at  a  premium)  for  the  amount  of  the  premium ;  if  the  stock  was  sold  at  a  discount,  debit 
Stock  Commissions  on  the  credit  side  of  the  cash  book  for  the  amount  of  the  discount. 

4.  Make  entry  for  all  invoices  received,  entering  your  wholesale  invoices  in  your  new  in- 
voice record  book  and  the  invoices  of  Department  E  goods  received  from  students  in  the  invoice 
book  used  while  working  Outline  IV.     (See  171,  7.) 

5.  Make  payment  for  all  invoices  received  from  students,  giving  notes  at  60  or  90  days 
whenever  you  can,  that  you  may  reserve  a  good  cash  balance  for  payment  of  wholesale  invoices. 

6.  Make  payment  for  all  notes  on  acceptances  matured,  and  collect  all  you  hold  that  are 
due.  If  you  hold  any  that  are  not  due  which  are  likely  to  be  difficult  of  collection  at  maturity, 
discount  them  at  your  bank. 

7.  Collect  the  second  installment  of  capital  stock  from  all  subscribers  and  issue  certificates. 
Credit  each  in  the  second  installment  column  of  subscription-installment  book  and  post  to  the 
stock  ledger.  Make  entry  for  the  cash  required  in  the  cash  book,  debit  side,  crediting  Subscrip- 
tions with  each  subscriber's  name  as  a  sub-entry  title  in  place  of  the  explanation,  and  post  the 
amount  (when  posting  from  the  cash  book)  to  the  general  ledger.  If  you  have  not  enough  per- 
sonal cash  to  pay  any  balance  on  your  own  second  installment,  you  may  give  the  company  your 
note.  Next  post  to  the  stock  ledger  from  the  stub  of  the  certificate  book  a  record  of  each  cer- 
tificate issued  at  this  time  and  from  the  subscription-installment  book  post  the  payments  on  stock. 
The  money  columns  of  each  subscriber's  account  in  the  stock  ledger  should  now  balance,  show- 
ing all  stock  paid  up  in  full.  This  being  the  case,  the  money  columns  of  the  accounts  in  the  stock 
ledger  may  be  ruled  if  you  so  desire,  as  there  will  be  no  further  entries  in  the  money  columns  of 
these  paid  up  accounts.  This  would  be  different  if  we  were  considering  assessable  stock,  but  that 
feature  of  stock  work  will  not  be  presented  in  this  outline. 

8.  (a)  Sell  the  balance  of  your  treasury  stock,  if  possible,  to  some  one  not  now  in  the  com- 
pany, at  5%  premium,  taking  merchandise  in  payment.  If  necessary  to  get  this  transaction,  you 
can  aflford  to  pay  a  higher  price  than  usual  for  the  merchandise,  so  long  as  it  does  not  exceed 
the  5%  stock  premium.^ 


1.     If  you  do  pay  an  extra  price  for  the  merchandise,  it  will  be  most  convenient  for  you  in  the  proving  of 

your  merchandise  account  later,  if  you  enter  the  merchandise   at   regular   price    and    deduct   from   the   stock 

premium  the  amount  of  any  excess   price  of  merchandise.     Otherwise,   do  not  extend   this   invoice  into  the 

money  columns  of  the  invoice  book,  but  make  a  journal  entry  for  the  amount  explaining  carefully  in  the  ledger 

when  posting. 


242  CAMPBELL'S  ACTUAL  ACCOUNTING 

(b)  If  your  purchaser  is  willing  to  pay  for  the  stock  in  full  at  this  time  it  will  not  be  neces- 
sary to  pass  the  transaction  through  the  subscription-installment  book,  as  you  may  make  entry 
properly  in  your  journal,  Merchandise  (Dr.  to),  Treasury  Stock  and  Commissions,  but  for  the  sake 
of  keeping  in  one  place  a  consecutive  list  of  your  stockholders,  it  will  be  well  for  this  purchaser 
also  to  sign  the  subscription  book,  and  in  that  case  you  will  make  entry  as  in  transaction  3, 
except  that  the  second  entry  also  will  be  in  your  journal  instead  of  the  cash  book,  and  will  debit 
Merchandise  instead  of  Cash. 

9.  Sell  ten  shares  of  your  own  stock  at  a  premium  if  possible,  but  at  a  discount  if  necessary, 
to  some  one  not  now  in  the  company.     As  this  is  your  own  paid-up  stock,  you  will 

(a)  Observe  that  the  company  does  not  get  the  money  for  it  and  you  will  place  what  you 
receive  in  the  envelope  used  for  your  private  cash  and  other  papers.  If  you  receive  payment  by 
a  check  have  it  certified  before  placing  it  in  the  envelope. 

(b)  Although  the  financial  part  of  this  transaction  receives  no  entry  in  the  books  of  the 
company,  the  stock  transfer  will  require  entry  in  the  stock  records. 

First,  you  will  cancel  the  certificate  which  you  held,  filling  the  blanks  on  back  of  the  certifi- 
cate and  making  a  record  on  the  original  stub  of  the  same  number. 

Second,  you  will  issue  to  the  purchaser  for  the  number  of  shares  which  he  has  purchased 
the  first  certificate  not  issued,  numbering  it  consecutively  with  the  certificate  preceding  and  will 
issue  to  yourself  for  the  balance  of  the  shares  which  you  hold,  the  next  certificate  in  consecutive 
order. 

Third,  you  will  open  a  new  account  in  the  stock  ledger  for  the  new  stockholder,  if  he  be  one 
outside  of  your  company,  and  will  post  to  it  the  record  of  the  issue  of  the  new  certificate  with- 
out any  record  whatever  in  the  money  columns  of  his  account,  since  this  is  paid-up  stock.  If  your 
stock  be  sold  to  a  former  stockholder,  this  same  record  will  follow  on  the  first  vacant  line  in  his 
present  stock  account. 

Fourth,  post  to  your  stock  account  in  the  stock  ledger,  the  record  of  the  cancellation  of  the 
certificate  which  you  held  as  well  as  the  record  of  the  issue  of  your  new  certificate  and  extend 
the  correct  amount  into  the  Balance  of  Shares  Held  column.  Again  there  will  be  no  record  in  the 
money  columns  of  the  stock  ledger  account.  File  your  cancelled  certificate  in  an  envelope  marked 
Certificates  Cancelled  or  perhaps  you  may  find  a  convenient  place  for  it  in  the  back  compartment 
of  your  invoice  file.  If  you  were  not  using  your  certificate  stubs  as  a  book  of  entry  and  refer- 
ence, the  cancelled  certificate  could  be  reattached  to  the  original  stub  with  paste,  but  this  would 
make  your  stubs  so  inconvenient  for  reference  that  it  will  be  best  to  file  the  cancelled  certificates 
elsewhere,  making  a  reference  on  the  cancelled  stub  to  the  place  of  filing. 

10.  Ask  some  other  stockholder  to  make  a  sale  of  part  of  his  shares.  If  he  cannot  find  a 
purchaser  in  the  schoolroom  without  difficulty,  buy  this  stock  yourself.  The  records  for  the 
transaction  will  be  very  similar  to  the  records  of  9  preceding.  You  can  give  your  personal  note 
for  payment,  or  if  you  receive  money  enough  from  the  sale  of  the  stock  in  9  above,  you  can  use 
that  in  paying  for  this  stock. 

11.  Make  remittance  in  cash  to  the  College  Commercial  Company  in  full  for  invoices  of  mer- 
chandise received  from  the  four  houses  with  which  you  are  dealing  and  place  new  orders  as  large 
as  the  schoolroom  limit  will  permit.  Do  not,  however,  exactly  duplicate  your  last  orders,  but 
let  the  omitted  ticket  be  something  different  from  that  omitted  the  last  time. 

12.  Secure  orders  for  your  next  day's  trading,  being  careful  to  secure  one  order  from  some 
one  of  your  stockholders  (preferably  one  who  is  probably  short  of  cash)  for  enough  merchan- 
dise to  cover  the  amount  of  his  stock.  Make  the  terms  of  this  order,  note  payable  on  demand^ 
giving  the  usual  trade  discount  with  1%  for  the  note. 

13.  You  are  now  ready  to  declare  your  first  dividend. 

(a)  Post,  (b)  Prove  cash,  (c)  Make  bank  deposit,  (d)  Prove  Bills  Receivable  and 
Payable. 


CAMPBELL'S  ACTUAL  ACCOUNTING 


243 


(e)  Prove  Merchandise,  taking  your  inventories  in  all  departments  carefully.  Observe  that 
the  accounts  with  the  different  lines  of  goods  classified  into  departments  on  the  basis  of  the  per 
cent,  of  profit  will  condense  the  wholesale  stock  into  four  Departments,  which  with  Depart- 
ment E  will  just  fill  the  columns  of  your  expert  report  blanks. 

(f )  Close  Freight  and  Taxes  on  Mdse.  into  the  Mdse.  account  and  take  a  trial  balance. 

(g)  Take  inventories  of  all  accounts,  such  as  Expense  and  Salaries,  unless  all  items  in- 
cluded in  these  accounts  are  considered  a  total  loss  at  this  time,  and 

(h)  Make  out  a  balance  sheet  showing  enough  of  the  loss  and  .gain  transferred  to  Divi- 
dend No.  I  to  make  a  5  or  10  per  cent,  dividend  on  your  capital  stock,  the  balance  of  loss  and  gain 
being  transferred  to  an  account  which  we  will  style  Undivided  Profits.  For  form  of  the  balance 
sheet  see  173. 

(i)  Close  your  books.  Transfer  loss  and  gain  items  to  the  Loss  and  Gain  account  as  in 
former  closings.  Then  distribute  the  loss  and  gain  by  an  entry  in  the  journal,  in  which  you  will 
debit  Loss  and  Gain  for  the  total  amount  of  gain  and  credit  Dividend  No.  i  for  the  amount  indi- 
cated in  the  balance  sheet  and  Undivided  Profits  for  the  balance  of  the  gains.  Observe  that  Capi- 
tal Stock  is  not  touched  in  the  closing  entries  as  were  the  partners'  stock  accounts  in  keeping  part- 
nership books. 

14.  Post  this  loss  and  gain  entry  to  your  ledger,  opening  accounts  with  Dividend  No.  i  and 
Undivided  Profits  on  consecutive  pages  next  following  the  page  assigned  to  Treasury  Stock  and 
submit  your  books  to  your  teacher  for  approval,  with  an  analytical  form  of  statement  as  in 
173,  submitting  therewith  all  papers  reserved  for  his  inspection,  your  customers'  orders  for 
merchandise  and  a  duplicate  of  the  full  report  carefully  copied  into  the  form  below. 

REPORT 

Report  of  School  Duties:    I  take  bookkeeping Hours  a  day. 

Hours  worked  since  last  report ,  Absent Total No.  of  Letters  written 

No.  of  Invoices  bo't  of  wholesale  houses Of  students ,   Total 

No.  of  Payments  made  in  cash ;   in  notes ;    in    acceptances ;    Total 

No.  of  Payments  rec'd  in  cash ;    in  notes ;    in    acceptances ;     Total 

No.  of  Sales  made:     To  T.   &   T.  Co '. ;    to  students ;   Total  No ,  $ 

No.  of  Entries  made Average  per  hour Time  on  trial  balance hours. 


NOTES 


Bills  Receivable,  Ledger  Balance 

Total  uncollected  in  bill  book , 

Total  value  of  notes  in  the  safe 

Bills  Payable,  Ledger  Balance 

Total  unpaid  in  bill  book , 


CASH 


Ledger  Balance 

In  bank,  Stb.  No.. 
In  safe,  Currency 
In  safe,  Checks,  _ 


Total  Cash  on  hand. 


MERCHANDISE 

Department  A 
Goods 

Department  B 
Goods 

TEACHER'S  MARKING 

Cost  of  Mdse.  bought 

Accuracy 

3 
2 
2 
2 
1 

Present  inventory 

Neatness 

Cost  of  goods  sold 

Orderliness. 
Records  . . . 

Sales  of  m^r'^hap'lisfi . . . . 

Gain,  red  ink ;  Loss,  black .... 

Progress 

Errors:  Ourfvr.red;  cont. black 

Average 

' 

Respectfully  submitted. 


TEACHER'S 


,191. 


STAMP 


244 


CAMPBELL'S  ACTUAL  ACCOUNTING 


^73      statement  of  the  C.  W.  Barke  Commerolal  Company*  Jan.  1«  19_ 


Trial  Balance,  Faoo  of  Ledger 

„ 

1 

Capital  Stook 

50000 

00 

2 

Treasury  Stook 

5000 

00 

CB 

Cash 

40924 

39 

13 

Merchandise  (laveatory  #3936.01) 

51464 

34 

58147 

54 

23 

Merohandise  DlBootiut 

425 

87 

457 

44 

24 

Expense  (Inventory  $36.00) 

1302 

00 

34 

Advertising 

542 

00 

25 

Salaries  (Liabilities  Inventory,  $37,50) 

550 

00 

25 

Interest  &  Blsoouat 

^ 

7 

44 

18 

Bills  Reoelvahle 

5324 

43 

1675 

96 

18 

Bills  Payable 

195 

00 

1488 

12 

29 

UoConnell  &  Company 

4365 

97 

648 

47 

40 

Anderson  &  Anderson 

2250 

63 

1386 

96 

50 

F.  E.  Bams 

2214 

78 

102 

00 

61 

The  Van  Camp  Packing  Company 

— —  Resources  &  Liabilities  

744 

00 

1389 

18 

11SS03 

41 

115303 

^ 

Resources  

Treasury  Stook 

5000 

00 

Cash 

40924 

39 

Merchandise,  per  Inventoiy, 

3936 

01 

Expense,  per  Inventory, 

36 

00 

Bills  Receivable,  per  list  attached. 

3648 

47 

MoConnell  &  Company 

3717 

50 

Anderson  &  Anderson 

863 

67 

F.  B.  Bums 

Total  Assets 

2112 

78 

60238 

82 

-  Liabilities  

Salaries  (Earned  but  not  charged,  Lla*.  Inv.) 

37 

50 

Bills  Payable,  per  list  attached. 

1293 

12 

The  Van  Camp  Packing  Company 

645 

18 

Total  Liabilities 
Met  Resources.  C.  W.  Burke  Commercial  Co.,  Pres.  Worth 

1975 

80 

58263 

02 

"-"■""""""-  iiOsses  &  vsina  --------- 

--  Gains  -- 

Merohsdidlse  Sales 

$68147.54 

Merchandise  Cost*  total        #51464.34 

Dednot  aoods  on  Hand  (Inventory)   9936  0^. 

aives  Cost  of  Goods  Sold 

Subtracting  from  Sales  gives  Mdse.  Gain 

47528.33 

10619 

21 

Merohandise  Discount,  on  Invoices  Bo't 

$457.44 

Allowed  on  Sales 
Eet  Gain  In  Mdse.  Discounts 

426.87 

31 

57 

Interest  &  Discount,  Int.  Col*  on  notes 
Total  Gains 

7 

74 

10658 

52 

--  Losses  — 

£3;pense.  Total,  debit 

♦1302.00 

Inventory  deducted 
Fet  loss  in  Expense 

36.00 

1266 

00 

Advertising 

542 

00 

Salaries,  Ledger  debit 

$550.00 

Earned  but  not  charged,  (Ida.  Inv.) 
Total  loss  In  Salaries 
Total  Losses 

C.  W.  Burke  Commercial  Company's  ITet  Gain 

—Disposition  of  Gain  — 

37.50 

587 

50 

£395 

50 

526^ 

02 

Dividend  So.  1  (10  ^  of  Capital  Stook) 

Cr. 

5000 

00 

tmdlvlded  Profits 

Capital  Stock  of  Conqpaay 

C.  W.  Burke  Commercial  Company's  Present  Worth 

Cr. 

3263 

02 

8263 
50000 

02 

00 

5826^ 

CT" 

CAMPBELL'S  ACTUAL  ACCOUNTING  245 

174.  I.  Make  a  sale  to  the  Townsite  and  Trading  Company  at  list  price  on  account  sub- 
ject to  draft  of  all  Department  E  goods  on  hand,  entering  this  sale  in  the  journal  and  itemizing 
it  carefully.  We  make  this  entry  in  the  journal  for  two  reasons,  one  because  the  sale  is  so  infre- 
quently made  that  it  was  not  desirable  to  use  a  column  for  it  in  the  sales  book,  and  the  other  be- 
cause we  have  no  itemized  order  to  file  for  reference  and  must  therefore  copy,  in  connection  with 
the  entry,  an  itemized  list  of  the  goods  sold. 

2.  Fill  orders  approved  by  your  teacher  when  books  were  submitted. 

3.  (a)  Open  your  dividend  book  and  on  the  first  page  write  up  Dividend  No.  i,  placing 
opposite  the  name  of  each  subscriber  the  amount  of  dividend  to  which  he  is  entitled  and  proceed 
to  draw  the  company's  checks  for  the  amounts.  In  delivering  these  checks,  take  with  you  your 
dividend  book  and  when  you  deliver  the  check,  have  each  subscriber  sign  for  the  dividend,  in  the 
signature  column  on  the  line  opposite  his  name. 

(b)  Make  entry  in  your  cash  book,  credit  side,  debiting  Dividend  No.  i  explained  by  the 
name  of  the  stockholder  as  a  sub-title,  and  post  to  the  account  with  Dividend  No.  i  in  the  general 
ledger,  entering  the  name  of  the  subscriber  in  the  wide  column  of  the  ledger  account.  When  these 
dividends  are  all  paid,  the  dividend  account  will  balance  and  should  be  ruled.  Have  the  check 
that  is  issued  in  your  favor  certified,  and  then  place  it  in  the  envelope  containing  your  private 
cash  and  papers. 

4.  When  you  have  secured  the  demand  note  from  the  stockholder  to  whom  you  are  in- 
structed to  make  special  sale  of  merchandise  in  172,  12,  present  it  to  him  for  payment,  offering 
to  take  his  stock  in  part  or  full  payment  as  the  case  may  be.  As  this  stock  becomes  the  property 
of  the  company,  make  entry,  debiting  Treasury  Stock  and  crediting  Bills  Receivable.  The  debit 
to  Treasury  Stock  must  be  made  for  the  par  value  of  the  stock.  If  in  your  transaction  with  the 
student  you  have  bought  at  either  a  premium  or  a  discount,  adjust  that  by  an  entry  crediting  or 
debiting  Stock  Commission. 

5.  Buy  this  stock  from  the  company  for  yourself,  giving  the  company  your  individual  note 
on  demand  for  the  amount. 

6.  Take  the  money  which  you  received  from  the  company  for  dividend  and  apply  it  to  the 
payment  of  your  note  on  demand  given  as  instructed  in  5,  and  transfer  to  the  company  enough 
of  your  stock  to  pay  the  balance  due  on  your  note.  This  entry  would  be  best  made  in  your 
journal,  debiting  Cash  and  Treasury  Stock  and  crediting  Bills  Receivable  for  the  amount  of  your 
note,  and  then  posting  Cash  to  the  cash  book.  Observe  that  the  surrender  of  stock  to  the  com- 
pany on  your  part  will  necessitate  the  cancellation  of  your  present  certificate,  or  one  of  your  certifi- 
cates, if  you  hold  two  (the  purchase  of  stock  which  you  made  in  5  would  give  you  two  certifi- 
cates), and  the  reissue  of  a  new  certificate  to  yourself  for  the  balance  of  shares  held.  Complete 
the  stock  records  carefully,  consulting  your  teacher  if  necessary,  to  be  sure  that  they  are  correct. 

7.  Pay  for  all  invoices  bought  from  students.  In  payment  for  some  one  of  these  invoices 
from  some  one  not  a  stockholder  (preferably  the  largest  invoice  received  from  a  non-stockholder) 
give  the  company's  note  payable  on  demand.     Make  other  payments  as  usual. 

8.  (a)  Pay  all  notes  and  acceptances  that  you  owe  that  have  matured,  or  if  you  are  short  of 
cash,  pay  the  interest  and  give  new  notes  with  an  endorser  in  each  case. 

(b)  Collect  all  notes  and  acceptances  which  you  hold  that  are  due.     Draw  on  T.  &  T.  Co.^ 

(c)  Pay  the  note  on  demand  given  as  instructed  in  7  above,  insisting  that  the  holder  take 
stock  in  the  company  for  it.  You  may  sell  the  stock  at  a  discount  if  necessary,  but  it  would  be 
better  to  talk  the  stock  up  so  as  to  induce  him  to  take  the  stock  at  a  premium.  If  there  is  not 
enough  treasury  stock  on  hand  to  pay  the  note,  put  in  some  of  your  own  stock  and  be  careful  not 
to  get  tangled  in  making  the  entry. 

9.  Write  to  the  College  Commercial  Company  including  cash  remittance  for  invoices  last  re- 
ceived (borrow  at  the  bank  as  before  if  necessary)  and  including  in  your  letter  new  orders  for  mer- 
chandise as  before. 


1.    Include  with  each  bank  deposit  in  this  Outline  a  draft  on  the  T.  &  T.  Co.  for  some  amount  in  round  num- 
bers, as  $500,  $1000,  or  $1500,  but  not  exceeding  95%  of  their  net  credit  on  your  books. 


246 


CAMPBELL'S  ACTUAL  ACCOUNTING 


10.  If  the  amount  of  money  set  aside  to  Undivided  Profits  when  your  last  dividend  was  paid, 
together  with  the  gains  on  the  sales  just  made,  will  be  sufficient  to  pay  a  25%  dividend,  you  are 
ready  to  make  another  closing  of  your  books.  If  the  gains  are  not  large  enough,  secure  orders 
for  another  day's  trading  large  enough  to  insure  the  desired  profit.  Present  them  at  once  to 
your  teacher  for  approval  and  fill  them  as  soon  as  approved,  placing  additional  orders  for  merchan- 
dise with  the  wholesale  houses  that  your  stock  may  not  be  depleted  when  you  need  it  for  future 
sales. 

11.  When  you  have  continued  your  trading  to  the  extent  sufficient  to  insure  you  a  25%  divi- 
dend, close  your  books,  taking  inventories  and  proving  all  accounts,  carefully  following  the  out- 
line in  172,  13. 

12.  Presuming  that  the  company  has  voted  to  increase  the  capital  stock  and  that  you  have 
taken  the  legal  steps  necessary,  you  will,  in  distributing  loss  and  gain  in  your  balance  sheet  at  this 
time,  distribute  an  amount  equal  to  the  25%  of  the  capital  stock  to  Stock  Dividend  No.  i  and  the 
balance  to  Undivided  Profits  as  before. 

13.  Close  books  as  before,  transferring  the  loss  and  gain  when  collected,  by  a  journal  entry 
to  Stock  Dividend  No.  i  and  Undivided  Profits,  provided  your  gains  at  this  time  exceed  the  25% 
desired  for  stock  dividend.  If  the  gains  should  be  less  than  25%  of  the  capital  stock,  this  entry 
should  transfer  all  of  the  gain  to  Stock  Dividend  and  another  entry  should  be  made  in  which 
you  will  debit  Undivided  Profits  and  credit  Stock  Dividend  No.  i  for  enough  additional  to  make 
the  25%  Stock  Dividend.  If  this  should  throw  the  balance  of  undivided  profits  on  the  debit  side 
let  it  so  appear  and  we  will  adjust  that  later.  The  account  with  Stock  Dividend  No.  i  you  will 
open  immediately  following  the  account  of  Dividend  No.  i,  and  the  entry  to  Undivided  Profits 
you  will  post  to  the  account  already  opened  under  that  name.  When  your  books  are  properly 
closed,  submit  them  to  your  teacher  for  approval,  with  a  statement  made  out  in  analytical  form, 
with  orders  for  another  day's  trading  and  a  duplicate  copy  of  your  full  report  as  copied  into  the 
form  below. 

REPORT 

Report  of  School  Duties:    I  take  bookkeeping Hours  a  day. 

Hours  worked  since  last  report ,  Absent Total No.  of  Letters  written 

No.  of  Invoices  bo't  of  wholesale  houses Of  students ,   Total 

No.  of  Payments  made  in  cash ;  in  notes ;    in    acceptances ;     Total 

No.  of  Payments  rec'd  in  cash ;   in  notes ;    in  acceptances ;    Total 

No.  of  Sales  made:     To  T.   &   T.  Co ;    to  students ;  Total  No ,  $ 

No.  of  Entries  made Average   per  hour Time  on  trial  balance hours. 


NOTES                                               1 

CASH 

Ledger  Balance 

Tn  bank,  Stb.  No.         ,  

In  safe,  Currency 

7otal  value  of  notes  in  the  safe 

Tn  Hafe,  Chftf^ks, 

jBills  Payable^  Ledger  Balance 

Total  unpaid  in  bill  book 

Total  Cash  on  hand 

MERCHANDISE 


Cost  of  Mdse.  bought 

Present  inventory 

Cost  of  goods  sold  

Sales  of  merchandise 

Gain,  red  ink ;  Loss,  black . . 
Errors:  Ourfvr.red;  cont.  black 


Department  A 
Goods 


Department  E 
Goods 


TEACHER'S  MARKING 


Accuracy . . . 
Neatness . . . 
Orderliness. 
Records  . . . . 
Progress. .  . 
Average .  . . . 


CAMPBELL'S  ACTUAL  ACCOUNTING 


24? 


TEACHER'S 
liespectfully  submitted, 


191....  STAMP 

175.  I.  Sell  to  T.  &  T.  Co.  all  goods  of  Department  E  included  in  last  closing  and  draw  at 
sight  in  favor  of  your  bank  for  the  last  preceding  sale. 

2.  Make  an  entry  in  your  journal  debiting  Treasury  Stock  and  crediting  Capital  Stock  for 
the  25%  increase  of  stock  made  at  this  time,  then 

(a)  Write  up  your  Dividend  Book  for  Stock  Dividend  No.  i  of  25%.  If  in  any  case  this 
would  make  fractional  shares  (as  it  will  do  if  a  stockholder's  shares  are  not  multiples  of  four) 
you  may  assign  him  a  number  of  shares  in  the  dividend  book,  the  nearest  number  larger  or 
smaller  than  the  exact  value  due  him,  making  sure  that  the  total  assignment  is  not  more  than 
the  treasury  stock  to  be  distributed  and  consulting  him,  if  the  assignment  be  larger  than  his  25%, 
to  know  that  he  is  willing  to  pay  cash  for  the  excess. 

(b)  Take  up  your  certificate  book  and  issue  certificates  to  each  stockholder  for  the  new  shares 
assigned  to  him  in  the  dividend  book.  In  delivering  these  certificates,  collect  in  cash  for  the 
difference  from  all  who  receive  certificates  for  more  shares  than  the  amount  of  their  25%  divi- 
dends, and  pay  in  cash  the  difference  to  all  who  receive  less  stock  than  the  exact  amount  of 
their  dividends.  Have  each  subscriber  sign  the  dividend  book  when  he  receives  payment,  and 
from  it  make  journal  entry,  debiting  Stock  Dividend  No.  i  and  crediting  Treasury  Stock  sepa- 
rately for  each  individual  transaction,  balancing  the  ent:-y  for  the  amount  of  cash^  paid  or  re- 
ceived in  the  stock  settlement.  In  posting  these  credits  to  the  Treasury  Stock  account,  remem- 
ber to  use  the  name  of  the  stockholder  in  the  ledger  account  just  as  you  have  previously  done 
in  the  entries  to  Subscriptions  account.  Post  the  record  of  certificates  issued  from  the  certificate 
stubs  to  the  Stock  Ledger  account.  If  the  fractions  should  be  largely  minor  fractions  so 
that  the  assignment  of  shares  of  stock  does  not  entirely  take  up  the  full  25%  increase,  the  above 
entry  will  leave  the  balance  of  unassigned  stock  as  a  debit  to  Treasury  Stock  and  the  amount 
of  cash  paid  out  in  distributing  the  dividend  will  exactly  equal  the  treasury  stock  remaining. 
This  stock  may  be  sold  later. 

3.  If  you  have  any  treasury  stock  on  hand,  sell  it  at  as  high  figures  as  possible  and  make  entry 
debiting  Cash,  crediting  Treasury  Stock  for  the  par  value,  and  debiting  or  crediting  Stock  Com- 
missions if  there  be  a  difference  between  the  amovmt  received  and  the  par  value  of  the  stock. 

4.  A  fire  breaks  out  in  your  store  and  the  loss  not  covered  by  insurance  amounts  to  about 
20%  of  your  capital  stock.  Deliver  to  your  teacher  as  destroyed  and  damaged  goods  a  quantity 
which  at  cost  price  will  equal  20%  of  your  capital  stock.  You  may  take  these  goods  from  De- 
partment E,  if  you  have  sufficient  of  them,  if  not,  take  from  the  wholesale  goods  until  you  have 
made  your  loss  aggregate  the  amount  indicated.  In  making  entry  for  this  loss  in  your  journal 
charge  Loss  and  Gain  and  credit  the  different  departments  to  which  the  goods  belong,  carefully 
itemizing  the  destroyed  and  damaged  goods. 

5.  Fill  customers'  orders  as  far  as  you  can  with  the  goods  remaining  and  enter  in  sales  book. 

6.  Stockholders  vote  to  meet  the  loss  by  fire  by  a  20%  reduction  of  the  capital  stock.  Make 
entry  closing  Undivided  Profits  into  Surplus  Fund  (a  new  account),  then  call  in  all  certificates 
and  issue  new,  for  20%  less  than  the  former  holding.  As  you  issue  each  certificate,  debit  Capital 
Stock  and  credit  Surplus  Fund,  using  the  name  of  the  subscriber  as  an  explanation.     If  fractional 

1.  Instead  of  issuing  only  full  shares  of  stock  to  each  stockholder  as  has  been  done  in  declaring  this 
stock  dividend,  it  is  the  custom  with  some  companies  declaring  frequent  stock  dividends  to  keep  a  separate 
record  in  the  stock  ledger  for  the  exact  amount  of  stock  dividend  of  each  stockholder,  issuing  certificates  only 
for  the  full-  shares  represented,  and  allowing  the  fractional  shares  of  stock  held  to  be  represented  by  a  receipt 
until  the  declaring  of  another  dividend  increases  the  fractional  amounts  to  a  full  share.  This  method  has  the 
advantage  of  giving  every  one  exactly  his  proportion  of  stock  and  might  be  insisted  on  by  stockholders  who 
were  unwilling  to  pay  for  additional  fractional  shares  or  to  sell  to  the  company  at  par  the  fractional  shares 
to  which  they  were  entitled,  as  we  have  supposed  them  to  do  in  the  settlement  made  above. 


248 


CAMPBELL'S  ACTUAL  ACCOUNTING 


stock  results,  handle  it  in  the  same  manner  as  you  did  when  declaring  your  stock  dividend.  Make 
the  debit  to  Capital  Stock  in  every  case  the  exact  20%  of  reduction,  and  if  ow^ing  to  the  fraction,  the 
stockholder's  new  certificate  is  issued  for  less  than  the  exact  stock,  the  extra  fractional  share  will 
be  debited  to  Treasury  Stock,  Treasury  Stock  being  credited  in  turn  when  a  stockholder  accepts 
a  certificate  for  a  larger  number  of  shares.  As  you  cannot  issue  stock  in  excess  of  the  total  re- 
duced capital,  you  cannot  let  every  one  take  extra  stock  to  make  his  shares  even,  so  it  will  be 
wisest  to.  adopt  the  rule  of  buying  into  the  Treasury  all  minimum  fractions  and  selling  the  extra 
stock  in  minimum  fractions  to  those  entitled  to  maximum  fractions.  Observe  that  the  increase 
of  capital  stock  when  stock  dividend  is  issued  is  directly  the  reverse  of  the  present  transaction 
in  which  we  reduce  capital  stock  to  meet  a  loss.  When  all  certificates  have  been  exchanged,  the 
capital  stock  account  may  be  balanced  and  the  balance  brought  down  and  should  then  show  just 
80%  of  what  it  did  before  the  fire,  or  exactly  the  same  stock  with  which  you  originally  incor- 
porated. 

7.  Close  all  accounts  showing  loss  and  gain  into  loss  and  gain  account,  taking  inventories 
as  usual  and  proving  your  merchandise  account.  In  making  this  proof  remember  that  the  goods 
lost  by  fire  must  be  taken  into  consideration  the  same  as  sales  to  partners  made  at  cost.  See 
previous  work  for  instructions. 

8.  When  you  have  completed  the  closing  of  your  books,  prepare  an  analytical  statement 
showing  the  exact  condition  of  your  business  and  submit  all  books  to  your  teacher  for  approval 
accompanied  by  duplicate  copy  of  the  report  below. 

REPORT 


Report  of  School  Duties:    I  take  bookkeeping , Hours  a  day. 

Hours  worked  since  last  report ,  Absent Total No.  of  Letters  written 

No.  of  Invoices  bo't  of  wholesale  houses Of  students ,   Total 

No.  of  Payments  made  in  cash ;   in  notes ;    in    acceptances ;     Total 

No.  of  Payments  rec'd  in  cash ;   in  notes ;    in    acceptances ;     Total 

No.  of  Sales  made:     To  T.   &   T.  Co ;    to  students ;  Total  No ,  $ 

No.  of  Entries  made Average   per  hour Time  on  trial  balance hours. 


NOTES 


Bills  Receivable,  Ledger  Balance 

Total  uncollected  in  bill  book 

Total  value  of  notes  in  the  safe 

Bills  Payable,  Ledger  Balance 

Total  unpaid  in  bill  book 


CASH 


Ledger  Balance . . . , 
In  bank,  Stb.  No.. 
In  safe,  Currency 
In  safe,  Checks,  _ 


Total  Cash  on  hand. 


MERCHANDISE 


Cost  of  Mdse.  bought 

Present  i  n  ventory 

Cost  of  goods  sold 

Sales  of  merchandise 

Gain,  red  ink ;  Loss,  black 

Errors:  Ourfvr.red;  cent,  black 


Department  A 
Goods 


Department  E 
Goods 


TEACHER'S  MARKING 


Accuracy. . . 
Neatness . . . 
Orderliness. 
Records  . . . . 
Progress. .  . . 
Average.  . . . 


Respectfully  submitted, 


.191., 


TEACHER'S 


STAMP 


CAMPBELL'S  ACTUAL  ACCOUNTING 


249 


176.  Original  Work.  You  have  now  followed  your  stock  company  through  a  sufficient 
variety  of  transactions  to  cover  all  cases  likely  to  arise  in  any  mercantile  organization  in  which 
the  stock  is  non-speculative.  If  you  desire  further  practice  you  cannot  do  better  than  to  dupli- 
cate the  work  given  in  sections  172  to  175,  not  limiting  yourself  to  text-book  instructions  as  to 
quantities,  but  conducting  the  business  at  will  and  proving  carefully  every  transaction.  Consult 
3'our  teacher  in  regard  to  this  step  and  unless  instructed  to  the  contrary,  proceed  to  order  mer- 
chandise, make  sales,  declare  dividends  out  of  your  profits ;  and  in  such  ways  as  seem  conven- 
ient to  you,  to  bring  in  all  the  stock  transactions  which  you  have  just  studied.  This  should  thor- 
oughly qualify  you  to  handle  any  stock  work  that  may  come  to  you  in  any  business  position  out- 
side, in  which  you  are  likely  to  be  placed.  At  the  close  of  this  original  work,  you  will  take  in- 
ventories, prove  all  your  transactions,  close  your  books  and  make  out  an  analytical  form  of  bal- 
ance sheet  similar  to  the  one  just  submitted  to  your  teacher,  submitting  your  books  for  approval 
with  duplicate  of  your  full  report  carefully  filled  out  as  in  former  closings. 

REPORT 

Report  of  School  Duties:     I  take  bookkeeping Hours  a  day. 

Hours  worked  since  last  report ,  Absent Total No.  of  Letters  written 

No.  of  Invoices  bo't  of  wholesale  houses Of  students ,  Total 

No.  of  Payments  made  in  cash ;   in  notes ;    in    acceptances ;     Total 

No.  of  Payments  rec'd  in  cash ;   in  notes ;    in    acceptances ;     Total 

No.  of  Sales  made:     To  T.  &  T.  Co ;  to  students ;   Total  No ,  $ 

No.  of  Entries  Made Average  per  hour Time  on  trial  balance hours. 


NOTES 

CASH 

Bills  Beceivahle,  Ledger  Balance 

Ledger  Balance. . 

Total  uncollected  in  bill  book 

In  bank,  Stb.  No. 

Total  value  of  notes  in  the  safe 

In  safe,  Currency 

Bills  PoiV able  Ledger  Balance 

In  safe,  Checks, 

Total  unpaid  in  bill  book 

Total  Cash  on  hand 

MERCHANDISE 


Cost  of  Mdse.  bought 

Present  i  n ventory 

Cost  of  goods  sold  

Sales  of  merchandise 

Gain,  red  ink ;  Loss,  black 

Errors:  Ourfvr.red;  cont. black 


Department  A 
Goods 


Department  E 
Goods 


TEACHER'S  MARKING 


Accuracy. . . 
Neatness . , . 
Orderliness, 
Records  . . . . 
Progress. . . . 
Average ... 


TEACHER'S 


Respectfully  submitted, 


191....  STAMP 

177.  Dissolution.  Omitting  all  legal  requirements  you  may  prepare  for  the  dissolution  of 
your  company  by  collecting  in  cash  all  assets  and  paying  in  cash  all  liabilities  shown  in  the 
statement  submitted  to  your  teacher.  In  settling  with  the  Townsite  and  Trading  Company  use 
the  Equitable  Settlement  Blank  supplied  in  your  outfit,  working  it  out  as  illustrated  in  the  form 
following.  If  you  hold  any  property  (such  as  real  estate,  store  and  office  fixtures,  or  chattels)  that 
is  sold  at  a  loss,  or  if  you  have  merchandise  on  hand  which  will  sell  either  at  profit  or  loss,  it  will 
be  necessary  when  these  sales  are  made  to  make  another  closing  of  your  books.  Before  doing  this, 
however,  pay  all  expense  bills,  detaching  from  your  prepared  blanks  all  remaining  numbers,  and 


250 


CAMPBELL'S  ACTUAL  ACCOUNTING 


when  you  have  completed  your  closing,  submit  to  your  teacher  a  statement  showing  the  present 
worth  of  the  company,  the  assets  of  which  should  now  be  only  cash,  the  amount  that  the  stock 
is  above  or  below  par  being  represented  in  the  Surplus  Fund  account ;  when  this  is  approved,  pro- 
ceed to  pay  stockholders  in  cash,  drawing  the  company's  check  in  favor  of  each  stockholder  for 
the  par  value  of  his  certificate  plus  the  per  cent,  of  premium  which  the  stock  bears,  or  less  the 
per  cent,  of  discount.  As  you  deliver  each  check  take  up  the  certificate,  having  the  student  sign 
his  name  in  the  transfer  blank  on  the  back  or  endorse  on  the  face  Surrendered  to  the  Company, 
with  the  date  and  his  signature.  Then  make  the  entry  debiting  Capital  Stock  for  the  par  value 
of  the  certificate,  crediting  Cash  for  the  amount  of  cash  paid  and  debiting  or  crediting  Surplus 
Fund  for  the  difference  according  to  whether  your  stock  at  dissolution  is  at  a  premium  or  dis- 
count. Make  these  entries  separately  in  your  journal^  and  post  the  cash  item  of  each  entry  to  the 
cash  book. 


EQUITABLE    SETTLEMENT    BLANK 

IN  ACCOUNT  WITH 

THE    TOWNSITE    &    TRADING    CO. 


INTEREST   RATE 


When  all  certificates  have  been  called  in  and  paid  for  as  instructed  above,  your  Capital  Stock, 
Cash  and  Surplus  Fund  accounts  in  your  general  ledger  should  all  be  in  balance,  and  when  you 
have  posted  the  cancellation  of  certificates  to  your  stock  ledger,  the  stock  ledger  accounts  should 
also  balance. 

Lastly,  take  your  cancelled  certificates  from  the  envelope  file  in  which  you  have  held  them 
and  paste  each  one  carefully  to  the  stub  from  which  it  was  taken  in  the  certificate  book.  Care- 
fully erase  all  disfiguring  marks  of  any  kind  in  your  books  and  submit  the  books  to  your  teacher 
for  final  approval,  filling  out  the  blanks  following  and  handing  him  with  your  books  a  check  for 
the  balance  of  your  cash  account. 


1.  The  student  will  observe  that  these  entries  might  be  made  in  the  cash  book  as  in  the  sale  of  treasury 
stock  in  172,  3.  The  journal  form  of  entry  is  suggested  here  as  giving  a  clearer  understanding  of  the  trans- 
action, and  when  the  student  has  mastered  this  theoretical  knowledge  he  will  easily  be  able  to  devise  for  him- 
self the  most  convenient  and  practical  methods  of  entry. 


CAMPBELL'S  ACTUAL  ACCOUNTING  251 

FINAL  STATEMENT. 

I, ,  entered  the College  on , 

19.  . .  .,  beginning  with  a  cash  capital  of  $5,000.     At  the  end  of  a  term  of months 

and days  I  have  completed  the  course  and  herewith  return  my  present  capital 

amounting  to  $ I  submit  also  for  final  examination  and  approval  the  books  I  have 

kept  during  my  course,  with  my  check  book,  bank  pass   book   statements   and    other    papers    of 
record. 

Respectfully  submitted, 

Dated  at 

i9---- 

The  student  who  desires  to  pursue  the  study  of  stock  company  bookkeeping  farther,  taking  up 
the  consolidation  of  companies  and  the  handling  of  assessments  and  other  problems  incident  to 
speculative  stocks,  is  referred  to  Campbell's  Advanced  Accounting,  now  in  preparation  to  follow 
this  text.  While  business  colleges  are  doing  the  best  that  possibly  can  be  done  to  equip  students 
in  from  three  to  six  months  with  knowledge  sufficient  to  enable  them  to  earn  a  living  in  the 
commercial  world,  no  student  should  ever  imagine  that  in  any  six  months'  course  he  can  possibly 
learn  enough  to  enable  him  on  going  into  business  to  compete  with  accountants  of  greater  ex- 
perience or  to  handle  unaided  any  situation  that  may  arise  in  business.  Less  than  a  year's  work 
cannot  be  sufficient  and  two  years'  work,  and  hard  work,  has  been  done  under  the  author's  super- 
vision by  some  of  the  young  men  who  made  the  records  referred  to  in  the  testimonials  concerning 
this  course  of  study.  Every  young  man,  whose  brain  will  stand  the  cultivation  and  is  worth  the 
expense,  should,  if  he  can  possibly  afford  it,  prolong  his  business  college  course  through  from 
twelve  to  twenty-four  months,  at  the  end  of  which  time  he  should  have  no  difficulty  in  doing  any- 
thing that  any  accountant  can  do  even  though  that  accountant  may  have  had  much  longer  experi- 
ence in  business  than  the  student  has  had  in  school. 

OFFICE  PRACTICE 

THE  WHOLESALE  OFFICE 

178.  I.  This  office  may  be  organized  as  a  corporation  in  which  the  students  of  the  school 
hold  the  stock  or  it  may  be  capitalized  by  the  teacher,  but  it  should  have  sufficient  capital  to 
enable  it  to  guarantee  collections  and  settle  with  each  of  the  consigning  houses  periodically, 
carrying  the  uncollected  accounts  of  customers  until  maturity.  The  rate  of  commission  charged 
for  selling  should  be  between  2%  and  5%,  according  to  the  risk  involved  in  guaranteeing  sales. 
Perhaps  3%  will  be  a  good  rate  in  most  schools,  2%  going  to  the  manager  for  his  services  and 
1%  being  carried  into  Surplus  Fund  to  provide  for  losses.  This  is,  however,  a  matter  to  be  ad- 
justed to  suit-each  individual  school. 

2.  The  Name  given  to  the  office  in  this  text  is  the  College  Commercial  Company. 

The  books  used  follow  in  principle  the  books  of  Outlines  IV  and  V,  but  with  some  modifi- 
cations. 

3.  The  Business  is  that  of  a  General  Selling  Agency  for  a  number  of  manufacturing  and  im- 
porting companies.  The  student's  remuneration  is  a  commission  on  sales,  at  a  rate  fixed  by  the 
teacher  according  to  the  amount  of  business  transacted.  It  is  computed  and  charged  to  the  re- 
spective companies  when  account  sales  are  rendered  and  remittances  made  as  shown  in  Cash 
Journal  under  date  of  Sept.  15. 

4.  The  Journal  and  Cash  Book  of  Outline  IV  are  combined  in  one  book  similar  in  rulings 
and  use  to  the  Cash  Book  of  Outline  IV,  except  that  the  Merchandise  Discounts  column  on  the 


252 


CAMPBELL'S  ACTUAL  ACCOUNTING 


(a) 


L 
F 

NAME  OF  ACCOUNT  CREDITED 

Order 
No 

CUSTOMERS      LEDGER 

DATE 

KERCHANOtSE    DISCOUNTS    DISTRIBUTED   TO  CONsK.noRS. 

»EC*e!ve„ 

CENERAL 

0    Oltl  (• 

U.  Ri.  (a. 

1  Limi  (• 

■  PiM  (•. 

l»  Slmilt 

tir  (jut  (0 

•mil  K*  (1. 

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/ 

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s'a 

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/ 
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7/^- 

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debit  side  of  the  book  is  divided  into  seven  sub-columns,  one  for  each  company  to  which  these 
discounts  are  to  be  charged,  and  that  on  the  credit  side  are  added  one  column  for  commissions, 
and  one  for  the  bank  account  which  is  in  this  practice  very  conveniently  kept  in  the  Cash  Jour- 
nal. The  Journal  feature  of  this  book  consists  in  entering  therein  the  very  few  entries  that  are 
not  cash  and  are  not  otherwise  provided  for  in  the  books  of  this  office  by  entering  the  credit 
on  the  debit  side  and  the  debit  on  the  credit  side  of  this  Cash  Journal,  as  the  book  is  termed. 
See  form  above. 

5.     All  goods  being  received  "On  Sale,"  a  combined  Receiving  Book  and  Stock  Book  takes 
the  place  of  the  Invoice  Book.     In  this  book  are  entered  all  goods  received  from  the  consignor 


COLLEGE  COMMERCIAL  CO. 


, Receiving  Record,  Slocii  Book  and  Account  Sales  Sheet ,      /^-^  Z^^^^^^gO^^^M^  CJ^gt^  ^-^ 


NAME  OF  GOODS  HANDLED.. 


Invwitory  broucfat  forward 
Rectivod 


^ 


/ 


Returned  Ungalablo 

S.ie9  ^^*4/^   l» 
Lilt  prices 
Grou  Sales 

Trade  Discount  /  2^2.  % 
Net  Sales  (Add  Borizontallr) 
Commission  @  2~  % 

Cash  Discts.  Allowed  Bujma 
Remittance  by  check 


iBTcntory  broueht  down      ^^^^S^T^/  ^ 


Quaki 


:<rRittnt  "Rour 


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t^f31<l. 


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TffTir 


tz 


C^uaVtrT^o\\.t6  0(As 


/4^ 


=7mm 


g'sW<Sd. 


7''^S 


ys^ 


To  the  Above  Company- 


\  dupli- 


our  books     The  61 
from  our  tales  book    footii 
verified  by  the  record  of  returned 
RoodB  and  inventntTea.    The  cash 


•ions  and  cash  remittances  arc 
taken  from  this  Record  to  our  Cash 
Book  credit.  All  of  those  records 
are  at  any  time  open  to  yotir  Id* 


2(JcW 


!5Z? 


^77" 


^f 


^a 


CAMPBELL'S  ACTUAL  ACCOUNTING 


253 


NAME  OF  ACCOUNT  CHARGED 


CSEDITOIIS'   LEDGER 


(•■•ISSItm 


BANK  ACC'T 


/f^/  fj 


^y^^^Z^-:P^Z-^^  /^^Z-ii^Zo^'iCi^ 


^y?3 


S/' 


/yt?/  2z 
g'JSc-ra 

2/2C7A, 


7^;^ 


^Zg^Jf^ 


2^S'^fg'i> 


^Zf^Jf4 


<^4^rf 


^j/rf?s 


?g 


//-^a^A'f^ 


^^ff^f 


^Sj!4>Sy 


and  at  each  statement  period  an  inventory  of  goods  in  stock  is  entered  beneath  the  total  receipts, 
and  the  difference  between  the  former  inventory  and  the  receipts  on  the  one  hand,  and  the  new- 
inventory  and  returned  goods  on  the  other,  is  made  to  agree  with  the  total  sales  for  each  com- 
pany respectively,  as  shown  by  the  Sales  Book.  When  they  do  not  agree,  the  student  will  take 
one  of  his  specially  ruled  broad  proof  sheets  and  will  arrange  four  separate  columns  for  each  sepa- 
rate kind  of  goods,  one  for  the  quantity  of  goods  sold,  one  for  rejected  goods,  one  for  the  trade 
discount  allowed  and  one  for  the  value  of  the  goods  at  list  price,  distributing  the  sales  to  these 
different  columns  as  in  the  double  page  form  in  179.  The  totals  of  these  several  columns  will 
enable  you  to  prove  the  quantities  of  your  inventory,  and  to  locate  any  error  in  computations, 
by  comparison  with  the  Receiving  Stock  Book,  whether  that  error  be  in  extensions  or  in  dis- 
counts.^ 

6.  The  Sales  Book  is  loose-leaf,  arranged  with  a  separate  sales  column  for  each  house  rep- 
resented by  the  Agency  and  planned  to  be  used  with  a  wide  carriage  billing  and  entering  type- 
writer, the  rulings  having  been  carefully  made  to  conform  to  standard  machines,  and  at  the  same 
time  be  suited  for  making  entries  with  a  pen,  if  the  student  be  not  qualified  to  use  the  typewriter. 
The  illustrative  sales  book  page  shown  in  181  (b),  furnished  from  the  regular  work  of  the  Com- 
mercial Department  of  Tarkio  College,  through  the  courtesy  of  Prof.  E.  V.  McCollough,  was  pre- 
pared for  the  use  of  this  text  on  a  Condensed  Billing  and  Entering  Typewriter,  carrying  a  loose- 
leaf  sales  sheet  fourteen  inches  wide.  An  illustration  showing  the  machine  with  such  work  in- 
serted is  presented  in  181  (a). 

1.  The  student  who  carefully  compares  the  account  sales  with  the  proof  of  sales  of  the  Quaker  Oats  Co. 
in  179,  will  obsei've  a  slight  difference  in  the  discounts  owing  to  the  giving  or  taking  of  the  half  cent.  In  the 
work  above,  these  differences  balance  each  other  or  are  easily  adjusted.  Where  they  will  not  adjust  them- 
selves in  any  way,  it  indicates  some  degree  of  error  which  the  student  should  correct  and  then  avoid  in  his 
future  work. 


254 


CAMPBELL'S  ACTUAL  ACCOUNTING 


179. 


net 

QUAKER  PATEKT  PLOU 

p^ 

QUAKER 

WHOLE  WHEAT 

PLOUH       11 

IHTOiC* 

sold 

Hejctd 

|Di8C't 

iliet  Arat. 

Sold 

Rejctd. 

3)lBC»t 

List  Amt. 

179  64 

lObrls 

6  87 

55 

00 

15o&se8 

6 

56 

52  50 

176  00 

8  " 

2brl6 

5  50 

44 

00 

15   •• 

6 

56 

52  60 

175  44 

10  " 

6  87 

55 

00 

12   " 

Soases 

5 

25 

42  00 

171  50 

10  •• 

6  88 

65 

00 

16   • 

6 

56 

62  50 

179  64 

10  " 

6  87 

55 

00 

16   • 

6 

56 

62  60 

176  00 

8  •• 

2brl6 

5  50 

44 

00 

16   • 

6 

66 

62  60 

175  44 

10  - 

6  87 

56 

00 

12   « 

SoasoG 

6 

26 

42  00 

171  60 

10  » 

6  88 

55 

00 

15   • 

6 

56 

52  60 

179  64 

10  - 

6  87 

55 

00 

16   •• 

6 

66 

62  60 

176  00 

8  - 

2brl6 

5  50 

44 

00 

15   - 

6 

56 

52  60 

176  44 

10  " 

6  87 

55 

00 

12   • 

Soases 

5 

26 

42  00 

171  50 

10  •» 

6  88 

55 

00 

16   •• 

6 

66 

52    50 

169  69 

10  * 

6  87 

55 

00 

16   • 

6 

66 

52  50 

165  46 

10  » 

6  87 

55 

00 

12   • 

Soases 

6 

26 

42  00 

166  46 

10  •• 

6  87 

55 

00 

12   •• 

3   - 

6 

26 

42  00 

175  44 

10  •» 

6  87I 

55 

00 

12   » 

3   - 

6 

25 

42  00 

Z770    79 

154brls 

6brls 

■ 

105  84 

847 

00 

222ea8e8 

18oa6e6   97 

10    777  00 j 

180.  In  the  routine  work  of  the  office,  the  student  should  need  but  little  special  instruction, 
especially  if  he  has  completed  acceptably  all  the  work  of  the  course,  and  no  student  should  be 
detailed  to  the  work  of  the  office  until  he  has  completed  the  course  at  least  through  Outline  IV. 
Any  one  placed  in  this  office  with  less  preparation  will  need  the  special  instruction  of  the  teacher 
and  will  even  then  be  learning  chiefly  by  rote,  and  will  lose  much  of  the  very  excellent  drill  in 
original  accounting  that  this  office  affords.  Study  the  following  instructions,  including  the  Re- 
port and  footnotes,  very  carefully  before  beginning  the  work  of  the  office. 

1.  No  order  is  ever  to  be  filled  for  any  student  for  the  full  quantity  of  goods  represented  by 
the  tickets  attached  to  the  invoices. 

2.  The  tickets  not  included  in  the  student's  order  are  to  be  placed  in  an  envelope  bearing  the 
name  of  the  firm  from  which  they  were  received  that  they  may  be  deducted  from  the  inventory  and 
returned  as  damaged  goods  at  the  next  settlement. 

3.  No  order  is  ever  to  be  filled  for  any  student  unless  it  is  stamped.  Vised,  by  the  teacher. 
4-    On  entering  the  office  the  student  should  check  up  inventories,  cash,  notes,  etc.,  and  see 

that  everything  is  correct. 

5.  While  in  the  office  he  should  keep  all  orders,  notes  and  other  papers  properly  filed  and  the 
office  at  all  times  in  perfect  order.    "Have  a  place  for  everj-thing  and  everything  in  its  place." 

6.  (a)  The  first  student  to  act  as  manager,  on  the  opening  of  this  office  in  any  schoolroom 
will,  on  entering  the  office,  supply  the  office  at  his  own  expense  with  a  pad  of  invoices  for 
each  house  represented  in  the  Agency  and  will  renew  an}'^  stock  that  becomes  exhausted,  although 
no  student  should  ever  need  to  remain  in  the  office  long  enough  to  exhaust  any  pad  of  invoices. 

(b)  Immediately  upon  receiving  his  stock  of  invoices  (to  which  tickets  representing  the 
goods  are  attached)  he  \\-ill  make  entry  on  a  separate  sheet  of  the  Receiving-Stock  book  for  the 
goods  received  from  each  companj-  as  shown  in  the  form. 

(c)  Upon  the  transfer  of  the  office  to  a  successor,  the  incoming  student  will  check  up  all  in- 
ventories as  instructed  in  4,  and  will  pay  the  outgoing  student  for  the  stock  of  invoices  remain- 
ing, the  value  of  each  pad  being  estimated  proportionately  to  the  first  cost  of  the  invoices  by 
counting  the  remaining  sheets. 

7.  If  an  error  be  made  in  making  out  an  invoice  for  any  customer,  the  invoice  must  not  be 
sent  out  with  any  erasures  or  blots  of  any  kind,  but  a  new  invoice  must  be  made  out  and  the 
merchandise  tickets  of  the  spoiled  invoices  placed  in  the  Rejected  Goods  envelope  of  the  com- 
pany to  which  they  belong  to  be  returned  at  settlement.    All  office  work  must  be  perfect. 


CAMPBELL'S  ACTUAL  ACCOUNTING 


255 


QUAKES  PUTPSD  WHEAT 

QUAKSH  R0LL3D 

OATS 

sold 

He Jctd.  i  Disc  •  t 

List  . 

kmt. 

sold 

Hejctd- 

Dlao't 

|Llst  . 

tnt. 

25case8 

!l   9  38 

75 

00 

Seases 

^cases 

2  85 

,    22 

80"^ 

25   • 

9  38 

75 

00 

10   - 

1 

3  56 

28 

50 

25   - 

9  36 

75 

00 

10   - 

3  56 

28 

50 

20   " 

Scases 

7  50 

60 

00 

10   •• 

3  56 

26 

50 

25   • 

9  38 

75 

00 

8   - 

2ca8e8 

2  85 

22 

60 

26   " 

9  38 

75 

00 

10   " 

3  56 

28 

50 

25   » 

9  38 

75 

00 

10   " 

3  56 

26 

50 

20   " 

Seases 

7  50 

60 

00 

10   " 

3  56 

28 

50 

25   • 

9  38 

75 

00 

8   » 

2ea8e8 

2  85 

22. 

80  1 

25   » 

9  38 

75 

00 

10   •• 

3  56 

28 

50 

25   •• 

9  38 

75 

00 

10   • 

3  56 

28 

50 

20   " 

Scases 

7  50 

60 

00 

10   "          1 

S  66 

28 

50 

25   * 

9  38 

75 

00 

25   •• 

9  38 

75 

00 

6   - 

4case8 

2  14 

17 

10 

25   - 

9  38 

75 

00 

6   - 

4   " 

2  14 

17 

10 

25   " 

9  38 

75 

00 

10   " 

3  56 

28 

50 

365case8 

IScases 

[144  44 

1155 

00 

136cases 1 

14caaa8 

48  43 

387 

60 

8.  The  student  will  observe  that  freight  expense  bills  are  attached  to  invoices,  following  the 
merchandise  tickets.  If  the  college  maintains  a  freight  office,  these  freight  bills  with  the  goods 
attached  as  per  order*  will  be  delivered  by  the  wholesale  office  to  the  freight  office,  the  wholesale 
manager  making  out  the  regular  triplicate  bills  of  lading  as  required  by  the  school  and  delivering 
the  merchandise  invoices  only  to  the  customer.  The  freight  office  will  then  fill  out  the  expense 
bill  attached  to  the  merchandise  tickets  and  will  deliver  the  goods,  collecting  the  freight.  But  if 
there  be  no  freight  office,  then  the  manager  of  the  wholesale  office  will  fill  out  the  freight  bill  at- 
tached to  each  invoice  and  will  deliver  invoice,  goods  and  freight  bill  to  his  customer  at  the  same 
time.  As  the  customer  pays  the  freight  at  the  teacher's  desk  or  to  some  other  office,  the  wholesale 
house  will  make  no  entry  whatever  for  the  freight;  he  makes  out  the  expense  bill  merely  as  ac- 
commodation^  work, 

9.  (a)  The  work  of  the  "Daily  Closing^  should  be  performed  daily  in  this  office,  that  is, 
the  cash  balance  and  trial  balance  should  be  taken  and  the  bank  deposit  made. 

(b)  At  the  end  of  each  week  of  the  student's  office  practice  a  settlement  should  be  made 
for  the  compan)',  verifying  the  footings  posted  from  the  sales  book  by  the  sales  shown  in  the 
Receiving  Stock  book. 

(c)  On  the  student's  leaving  the  office,  he  should  make  a  complete  closing  of  the  books  and 
submit  to  the  teacher  a  copy  of  his  statement  in  the  analytical  form,  the  original  being  left  on 
record  in  the  books  of  the  office,  and  should  fill  out  for  the  teacher's  approval  and  acceptance  the 
following  report,  preparing  a  duplicate  form  on  typewriter. 

Report  on  Closing  the  Wholesale  Office :    I  take  bookkeeping hours  a  day.   Entered 

the  Wholesale  Office .19 

Have  received  and  filled  orders  as  follows : 

The  Quaker  Oats  Company, No ,  $ , 

The  American  Biscuit  Company No ,  $ 

The  Riverdale  Fruit  Company, No ,  $ 


1.  The  student  managing  the  wholesale  office  win  remember  to  detach  tickets  not  ordered  by  the  customer 
and  place  them  in  the  Rejected  Goods  envelope. 

2.  By  accommodation  work  we  mean  work  daae  by  a  student  for  the  accommodation  of  the  room,  rather 
than  for  the  special  advantage  of  the  one  doins  it.  In  many  tablet  courses  a  great  deal  of  the  office  work 
Is  of  this  nature.  This  is,  however,  the  only  instance  where  this  author  has  thought  it  necessary  to  ask 
any  student  to  perform  a  work  not  properly  bel<Miging  in  some  manner  to  his  office.  In  this  case,  the  work 
is  less  than  would  be  required  to  properly  bill  out  the  goods  through  a  freight  office,  and  the  making  out 
of  the  expense  bill  is  the  same  practice  that  the  student  would  have  in  a  freight  office. 


256 


CAMPBELL'S  ACTUAL  ACCOUNTING 


The  Harmer  Produce  Company,. . . .   No. 

F.  W.  Stone  &  Company, No. 

The  Van  Camp  Packing  Company,.    No. 

The  H.  W.  Spurr  Coffee  Company,.    No. 

Total No. 


I  have  on  hand  to  turn  over  to  my  successor  the  goods  of  the  various  companies  as  follows : 
The  Quaker  Oats  Company : 


-brls. 


. cases. 

. bxs. 

, cartons. 


Quaker  Patent  Flour, 

Quaker  Rolled  Oats, 

The  American  Biscuit  Company 

A.  B.  C.  Soda  Crackers,. .... 

Nobetter  Biscuits, 

The  River  Dale  Fruit  Company : 

Fancy  Apricots,  

Santa  Clara  Prunes, 

Muir  Peaches, 

The  Harmer  Produce  Company : 

Michigan  Apples,   

Cal.  Navel  Oranges, 

Choice  Potatoes, 

F.  W.  Stone  &  Company : 

Japan  Tea, chsts. 


Quaker  Whole  Wheat  Flour,.  . — 
Quaker  Puffed  Wheat, — 


A.  B.  C.  Oyster  Crackers,. 
Ambis  Sugar  Wafers,.  . .  . 


-cases, 
-cases. 

-bxs. 


. cartons. 


-bxs. 
-sks. 
-bxs. 

-brls. 


Choice  Apricots,  .  . . 
Fancy  Evap.  Pears,. 


-bxs. 
-bxs. 


. bxs. 

. sks. 


Cal.  Lemons,  bxs. 

Crushed  Barley, sks. 


English  Breakfast, 


chsts. 


Oolong  Tea, 
Ceylon  Tea, 


The  Van  Camp  Packing  Company : 
No.  2  Pork  and  Beans,  T.  S..  .  . 


-cases. 


Vegetable  Soup,  

No.  3  Extra  Tomatoes,, 


Lexington  Coffee. 
Revere  Coffee,  .  . 


No.  lo  Bordeau  Catsup, cases. 

Family  Size  Milk, cases. 

The  H.  W.  Spurr  Coffee  Company : 

Continental   Coffee,    bxs. 

Concord  Coffee,    bxs. 

The  books  of  the  College  Commercial  Co.  show : 

Cash  on  hand !  $- 

Personal  accounts  outstanding  less  than  6o  (6)  days $- 

Personal  accounts  outstanding  over  6o  days,  counted  good^ $- 

Personal  accounts  outstanding  uncollectible  per  list^ $- 

Notes  on  hand  not  yet  matured $- 

Notes  on  hand  over  due  but  considered  good^ $- 

Notes  on  hand  considered  worthless,  per  list^ $- 

Balances  in  favor  of  Creditor  Companies,  unpaid 

The  Quaker  Oats  Co., $ 

The  River  Dale  Fruit  Co., $ 

F.  W.  Stone  &  Co., $ 

The  H.  W.  Spurr  Coffee  Co.,. .  .$ 

Value  of  invoice  pads  to  be  paid  to  me  by  my  successor  $ 

All  of  which  is  properly  recorded  in  the  books 
of  the  College  Commercial  Company,  subject  to 
inspection. 

Respectfully  submitted, 


-chsts. 
-cases. 

-cases, 
-cases. 


-bxs. 
-bxs. 


The  American  Biscuit  Co., $. . . 

The  Harmer  Produce  Co., $.  . . 

The  Van  Camp  Packing  Co.,.  ...$... 


Teacher's 


Retiring  Manager. 


191 


Accuracy   3 

Neatness   2 

Orderliness 2 

Records  2 

Progress i 

Average 


Stamp. 


CAMPBELL'S  ACTUAL  ACCOUNTING 


?57 


i8i   (a) 


1.  No  good  manager  likes  to  have  accounts  of  this  class  on  his  books,  and  no  student  who  wishes 
to  cultivate  the  qualities  of  a  good  credit  man  will  permit  them.  Only  occasionally  when  the  customer  presents 
the  very  best  of  reasons,  should  new  orders  be  "O.  K.'d",  when  an  account  shows  a  balance  overdue.  In  the 
matter  of  notes  the  case  is  somewhat  different,  but  only  worse  for  the  credit  man.  The  ordinary  mercantile 
house  can  push  the  collection  of  an  account  with  a  delinquent  customer  more  easily  than  the  collection  of  a  note 
with  the  same  type  of  man  and  hold  his  custom.  All  notes,  therefore,  that  are  taken  in  settlement  of  accounts 
should  be  discounted,  or  placed  in  bank  for  collection,  at  least  ten  days  before  maturity.  Debtors  will  often 
meet  paper  presented  by  a  bank  when  they  would  endeavor  to  put  off  a  business  firm. 

2.  These  accounts  and  notes  are  in  exactly  the  condition  that  the  instructions  of  Footnote  1  seek  to  avoid. 
Many  of  these  bad  debts  probably  belong  to  students  who  have  dropped  out  of  school  with- 
out finishing  their  course, — moved  out  of  the  state — would  be  a  business  way  of  looking  at  it,  and  you  should 
consult  your  teacher  early  in  your  office  course  as  to  what  to  do  with  them.  It  is  a  matter  that  this  text 
will  leave  to  each  individual  school  principal.  Some  will  pay  these  accounts  from  the  teacher's  desk,  others 
will  appoint  some  student  as  a  trustee  or  administrator  of  the  delinquent  student's  estate,  if  he  has  left  an 
estate,  but  in  some  way  you  should  look  after  them  to  get  them  settled  and  off  your  books.  Accounts  that 
are  considered  positively  uncollectible  in  any  way  may  be  charged  to  Lost  Accounts  and  Notes,  an  account 
that  would  close  into  Loss  and  Gain  in  your  final  closing  if  you  were  handling  your  own  goods.  In  this 
business  if  your  charge  for  Commission  is  made  large  enough  to  include  Guaranty  also,  then  bad  accounts  are 
a  loss  to  the  C.  C.  Co.  and  are  to  be  charged  into  Loss  and  Gain  as  an  offset  to  Commissions.  If  the  Com- 
mission charge  does  not  include  Guaranty,  then  the  loss  on  these  bad  accounts  must  be  charged  from  the  Lost 
Accounts  and  Notes  directly  to  the  house  whose  goods  were  sold  to  that  customer. 

The  advantage  of  passing  uncollectible  accounts  through  Lost  Accounts  and  Notes  is  in  having  a  perma- 
nent record  of  them  and  of  the  disposition  made  of  them,  in  case  the  firm  should  be  able  to  collect  any  of 
them  later.  Observe  that  you  are  to  submit  to  your  teacher  with  your  books  at  this  time  a  list  of  ac- 
counts considered  uncollectible  and  a  similar  Ifet  of  uncollectible  notes.  Each  list  should  show  the  name 
of  the  delinquent  customer,  the  date  of  the  account  and  why  it  is  considered  uncollectible. 


258 


(b) 


CAMPBELL'S  ACTUAL  ACCOUNTING 
LOOSE-LEAF  SALES  SHEET 


8-4 


?-4 


3° 


#1331 

6.  7.  ivrg, 

60  ds.  3A0t  2/20.  1/30 

tea.  A.  B.  C.  Soda  Oraeken' 

"       A.  B.  0.  Oysters 
ortft.rrobetter  Biscuit 
Ambls  Sugar  Wafers 


Pootlngs  Brooj^t  Forward 
l!er,  17  1511 


#1332 

30  d>. 


25#  tas. 
loot  Sks. 

25f  bzs. 
50f   " 


R.  C.  Johaaon, 
2/10 


Ranoy  Apricots, 

Choice 

S.  C.  Prunes 

Brap.  Fears 

Malr    FacAhes 


#1333 

M.  M.  Carton, 

90  de.  3/10 

brls.  Mich.  Apples 
bzs.    Cal.  Lemons 
tncs.    Cal.  Naval  Oranees 
Sks.    Oruahad  Barle; 

Choice  Fotatoes,  60  In, 


Leas  12  1/2^ 

Mar.  18  1911 

Cash 

625# 

looof 
400# 
6oo# 

Leae  12  l/sf 

Mar.  18  1911 

Cash 


»1334 

M.  R.  Miller, 
fio  ds.  3/10,  2/20,  1/30. 


Lees  12  l/£j( 
Var,  19  1911 


brla.  Quaker  Fatent  Plour 
eases      "        Whole  Wheat  ?lour 
Purred  Wheat 
Rolled  Oats 


t,  E.  BrcvB, 
90  ds.  3/10 

hlf.  chts,    Japan  Tea 
"  Oolong  " 

Gng.  Break.  Tea 
Chesta  Ci^lon 


Less  12  l/23( 

VMT.    23  1911 

Cash 

450f 
300# 
540# 
300# 

Leaa  10^ 


M536  Mar.  30  I9IJ 

J.  H.  Kemper. 
Go  d8.3/l0  Cash  1/10  note  30d 

hgi,     O.C.  Java  Coffee  798! 

Arabian  Uoeha,  119B# 

Golden  Rio  1996* 

bxs.    Revere  eiend_  750f 

teea  10^ 


J1337 

C.   D.  Bumc, 
60  da.   3/aO,  i/20,  1/30 


Bar.  30  1911 


brls.  Quaker  Patent  Floor 
oases      "        Whole  v/heat  Flour 
"  "         Purred  Jhoat 

**  "        Rolleil  Oat9 


Less  12  1/2^ 


Footlnca  carried  foxvaxd 


126 

1  26 

125 


25 


o6i 
08 


J  10 
fa  50 

'^ 

45 


550 

350 
3  00 
285 


550 
350 
3  00 


S'i' 


15 


25 


93 

104 

128 


# 


17110 
I85"!? 


23 


150 

147 

337 

112 

w 

74 


219 
290 

22b 


'S? 


555  50 


2429 


165 


175 


2770 


1260 


107 


50 


46 


44 


7} 


1368 


56 


4200 


3«9 


06 


4569 


3805 


13 


4033 


80 


6323 


03 


422 


S4 


672 


30 


1053 


87 


53  14227 


97 


4706 


7377 


01 


CAMPBELL'S  ACTUAL  ACCOUNTING  259 

THE   ASSOCIATED  OFFICES 

182.  I.  This  association  of  offices,  spoken  of  elsewhere  in  the  text  as  the  General  Offices,  and 
best  known  to  the  student  through  one  of  its  most  prominent  members,  the  Townsite  and  Trading 
Company,  is  the  official  headquarters  of  all  fictitious  persons  and  for  all  offices  and  firms  for  which 
no  other  offices  are  provided  in  the  schoolroom.  It  may  be  organized  as  a  corporation  with  student 
stockholders,  but  as  its  business  is  to  stand  all  losses  in  order  that  the  students  and  the  C.  C.  Co. 
and  other  selling  agencies  may  make  a  profit,  its  stock  would  never  be  marketable  at  par ;  and 
while  stock  selling  below  par  might  be  a  desirable  feature  in  the  work  of  some  schools,  it  is  sug- 
gested that  the  teacher  capitalize  this  office  as  sole  proprietor,  ranking  as  president  and  appoint- 
ing the  manager  and  secretary.  The  capital  of  this  association  of  offices  should  be  large  enough 
to  enable  the  College  Investment  Company,  a  member  of  the  Association,  to  furnish  $5,000  invest- 
ment for  each  beginning  student  and  to  allow  and  carry  profits  of  at  least  half  that  amount  for 
each  student,  for  from  six  to  eight  months,  or  until  his  investment  is  returned  with  its  accumu- 
lated profits  at  the  end  of  his  course.  A  capital  of  $500,000  is  about  the  right  amount  for  the  aver- 
age school. 

2.  The  chief  business  of  these  offices  is  perhaps  that  of  the  T.  &  T.  Co.  in  furnishing  a  mar- 
ket for  the  student's  Department  E  goods.  Other  business  besides  the  investment  work  of  the 
College  Investment  Company,  which  has  been  mentioned,  is  collecting  rents  through  the  College 
Real  Estate  and  Collection  Company;  selling  city  lots  for  the  Townsite  and  Trading  Company; 
collecting  for  the  sales  made  by  the  College  Center  Office  Supply  Company;  collecting  freight 
charges  for  the  C.  C.  R.  R.  and  cartage  charges  for  the  College  Transfer  Co. ;  transacting  the  busi- 
ness of  the  U.  R.  Teacher  &  Company;  receiving  the  goods  and  accepting  the  drafts  drawn  against 
them,  in  all  sales  made  by  students  to  fictitious  persons,  as  in  Outline  V;  receiving  and  making 
entry  for  the  account  sales  rendered  by  the  C.  C.  Co.  to  the  seven  wholesaling  companies  and 
such  other  business  of  a  similar  nature  as  the  teacher  may  find  it  desirable  to  assign  to  these 
offices.  The  plan  of  the  work  of  the  associated  offices  may  be  made  as  simple  or  as  intricate  as  the 
school  management  may  desire. 

(a)  All  students  may  be  allowed  during  their  entire  course  to  sell  Department  E  goods  to 
these  offices  at  the  list  prices  on  four  months'  time  (see  91,  8)  and  to  draw  drafts  on  their  re- 
spective accounts  at  will,  making  an  equated  settlement  at  the  close  of  each  Outline,  as  at  the 
close  of  Outline  VII.  This  plan,  however,  makes  heavy  work  for  the  office  and  is  only  to  be  com- 
mended when  heavy  advanced  work  is  needed  for  postgraduate  or  second  year  students. 

(b)  The  better  plan  for  the  average  school  is  that  prescribed  in  the  text  by  which  all  work 
is  put  on  a  cash  basis  and  easily  handled  in  a  cash  book  and  ledger.  See  journal  form  following.  We 
have,  however,  provided  a  special  book  for  the  business  of  this  office,  which,  since  it  contains  a  sepa- 
rate column  or  columns  for  each  general  ledger  account,  will  enable  the  accountant  to  dispense  with 
the  general  ledger  entirely,  posting  only  the  personal  accounts  and  closing  his  books  on  the  face 
of  the  Ledger-Journal  as  shown  in  the  form  on  the  pages  following. 

This  special  form,  which  is  properly  called  a  Ledger-Journal,  follows  the  modern  idea  of 
spectal  books,  in  that  it  has  been  specially  devised  for  and  adapted  to  the  needs  of  the  office  in 
which  it  is  to  be  used.  The  student  will  observe  that  footings  are  carried  forward  as  in  a  six- 
column  journal,  or  that  by  cutting  the  pages  short  at  the  top  and  bottom  alternately,  footings  of 
one  page  may  be  "dropped"  onto  the  next  and  thus  carried  forward  without  rewriting  them.  He 
will  also  notice  that  when  the  books  are  to  be  closed,  the  Accounts  Payable  column  is  the  only 
one  that  contains  any  items  to  be  posted,  unless  the  plan  of  schoolroom  work  requires  more  gen- 
eral ledger  accounts  than  are  planned  for  in  this  work,  in  which  case  it  will  be  necessary  to  use 
the  Surplus  Fund  columns  for  Sundries  of  General  Ledger  columns  and  to  open  a  general  ledger 
to  which  the  footings  of  all  the  columns  should  be  posted.  In  that  case  it  will  be  proper  to  keep 
the  Capital  Stock  account  in  the  general  ledger  altogether,  it  being  brought  into  this  Ledger-Jour- 


26o 


CAMPBELL'S  ACTUAL  ACCOUNTING 


STOCK  tH     I 


Saaeoo 


s'aaceo  — 


BILLS  RECEIVABLE 


^cC  — 


/7k> 


fan 


fa<ro 


/'a«* 


/es^i 


tr.-^i' 


^if^O 


f//J2 ZJ 


fsv/^f2. 


saat 
saac 


Mft<- 


'i^ 


^jy/^A* 


ACCTS.  PAYABLE 


ENTRIES  AND  EXPLANATIONS 


^Jt€^ 

.  ^^^^^ 

^^^^ 


■^a^y^^  y^,r^^,,^Q.  '-/^y^r^i^^ 


nal  only  for  the  sake  of  having  all  the  general  ledger  accounts  in  the  journal  columns  and  dis- 
pensing with  the  general  ledger  altogether.  The  Capital  Stock  column  might  then  be  used  for 
Expense^,  Dr.,  or  for  any  one-sided  account. 

Using  this  book  as  it  is  planned,  the  figures  in  the  Accounts  Payable  column  are  to  be  posted 
to  the  creditors'  ledger  and  the  balance  of  that  ledger  made  to  agree  with  the  balance  of  this  pair 
of  columns  when  closed. 

For  the  other  columns,  observe  that  with  the  exception  of  accounts  that  ordinarily  have  only 
one  side  the  columns  are  paired,  a  debit  and  a  credit  column  being  side  by  side  regardless  of  the 

1.  Expense  is  the  title  of  a  column  in  almost  every  specially  ruled  book  in  business  if  the  book  records 
the  expenditure  of  cash.  Were  it  considered  necessary  to  instruct  the  student  in  so  simple  a  matter  a 
"routine"  might  be  easily  planned  for  this  or  any  other  office  involving  the  payment  of  a  number  of  Ex- 
pense Bills.  Any  student  who  is  capable  of  becoming  an  accountant  can  make  this  modification  for  himself 
if  his  needs  require  it. 


CAMPBELL'S  ACTUAL  ACCOUNTING 


261 


y?^t^^ 


/ 
/ 
/ 
/ 

/ 
/ 
/ 
/ 
2. 
2 

/y 

23- 

Y9 


SUHPLUS  FUND 


f^Y^ 


re>^^p- 


i676  6f 


/.fO 

£313 
2igi^ 


fift&'rz 


a^ 


^3  Z3 


<^S.'^ 


^3.<a? 


fUtfi 


9^/2ki 


REAL  ESTATE 


^ 


^£iao 


ffio 


1^0 


f7^ 


a'//^.  /a. 


llSiV/^ 


1W^4 


MERCHANOISR 


^^ 


^/5rj^ 


/£ej.2 


2/247^ 


^^ifi.  iff^i-t 


'6a i  J..  V 

?j^  rt  r2. 


side  of  the  journal  on  which  they  are  located,  and  that  the  single  columns  are  marked  Dr.  or  Cr. 
Observe  further  that  all  accounts  in  which  gains  or  losses  are  expected  are  arranged  for  con- 
venience on  the  right  hand  page  and  that  the  order  in  closing  books  is  as  follows : 

(a)  Post  all  personal  items  from  the  Accounts  Payable  columns  to  the  creditors'  ledger  and 
prove  the  work. 

(b)  Prove  Cash  and  Bills  Receivable  as  in  any  other  work,  the  journal  column  being  your 
ledger  account  in  each  case. 

(c)  Add  all  the  columns  and  take  a  trial  balance  of  the  footings. 

(d)  Enter  inventories  and  balances  as  illustrated  in  the  form.    These  inventories  are  usually 
found  as  in  other  work,  but  a  few  special  suggestions  will  be  in  place. 

The  inventory  of  Real  Estate  may  be  found  from  a  map  on  which  the  cost  value  of  each  piece 


262 


CAMPBELL'S  ACTUAL  ACCOUNTING 


of  property  may  be  marked,  or  it  may  be  estimated  by  adding  to  the  difference  between  the  sides 
of  the  account  one-fourth  of  the  total  sales,  which  represents  the  profit.^ 

The  inventory  of  investment  is  the  total  amount  of  investments  outstanding  among  the  stu- 
dents at  the  original  amount  of  each. 

The  inventory  of  Merchandise  is  the  total  of  the  amounts  of  goods  on  hand  in  the  College 
Commercial  Company  as  shown  by  their  latest  Account  Sales  computed  at  list  prices  less  12^%. 

(e)  Observe  that  double  columns  are  closed  as  any  double  entry  ledger  columns,  and  that  the 
single  columns  are  closed  by  subtracting  the  balance  entry  in  red  ink  from  the  proof  footing,  leav- 
ing nothing  in  the  lower  footing  of  the  page. 

(f)  Observe  that  these  losses  and  gains  are  carried  directly  into  the  Surplus  Fund  column, 
which  is  then  balanced  and  its  balance  brought  down  with  other  balances  below  the  closing  lines. 

(g)  Take  a  trial  balance  of  these  balances  brought  down  to  prove  your  work  and  make  out 
for  submission  to  your  teacher  a  statement  on  journal  paper  in  analytical  form,  submitting  with 
it  a  duplicate  of  your  full  report  neatly  copied  into  the  form  below. 


REPORT 

Report  of  School  Duties:     I  take  bookkeeping Hours  a  day. 

Hours  worked  since  last  report ,  Absent Total No.  of  Letters  written 

No.  of  Invoices  bo't  of  wholesale  houses Of  students ,  Total 

No.  of  Payments  made  in  cash ;   in  notes ;    in    acceptances ;    Total 

No.  of  Payments  rec'd  in  cash ;   in  notes ;    in    acceptances ;    Total 

No.  of  Sales  made:     To  T.  &  T.  Co ;   to  students ;  Total  No ,  $ 

No.  of  Entries  made Average   per  hour Time  on  trial  balance hours. 


NOTES 


Bills  Receivable,  Ledger  Balance 

Total  uncollected  in  bill  book , 

Total  value  of  notes  in  the  safe . 

Bills  Payable,  Ledger  Balance 

Total  unpaid  in  bill  book 


CASH 


Ledger  Balance 

In  bank,  Stb.  No.. 
In  safe,  Currency 
In  safe,  Checks,  _ 


Total  Cash  on  hand. 


MERCHANDISE 


Cost  of  Mdse.  bought 

Present  inventory 

Cost  of  goods  sold     

Sales  of  merchandise 

Gain,  red  ink ;  Loss,  black 

Errors:  Ourfvr.red;  cont. black 


Department  A 
Goods 


Department  E 
Goods 


Respectfully  submitted. 


.191.... 


TEACHER'S  MARKING 


Accuracy . . . 
Neatness . . 
Orderliness. 
Records  . . . . 
Progress. . . . 
Average .  . . . 


TEACHER'S 


STAMl 


1.    This  is  on  the  basis  of  a  supposed  profit  of  33S%,  and  is  a  matter  that  each  school  may  regulate  for 
itself. 


CAMPBELL'S  ACTUAL  ACCOUNTING  263 


SETTLEMENT  OF  THE  ESTATES  OF  BANKRUPTS  OR  DECEASEDi  PERSONS. 


183.  Following,  as  closely  as  schoolroom  limitations  will  permit,  the  law  of  the  State  in 
which  the  school  is  located,  the  teacher  may,  upon  application  of  creditors,  appoint  a  student  to  act 
as  trustee  or  administrator  to  settle  the  estate  of  students  who  have  become  insolvent  in  their 
school  business  or  who  have  dropped  out  of  school  entirely.  In  the  first  case,  appointments  should 
be  made  and  the  settlement  conducted  under  the  bankruptcy  laws  of  the  United  States  or  the  State 
in  which  the  school  is  located,  while  in  the  case  of  the  students  who  have  dropped  out  of  school 
without  settling  their  accounts,  it  will  be  proper  to  act  under  the  laws  governing  the  administration 
of  the  estate  of  deceased^  persons,  for  they  have  dropped  out  of  existence  as  far  as  the  schoolroom 
is  concerned  and  have  left  assets  in  the  shape  of  cash,  merchandise,  notes  and  accounts  which 
should  be  turned  into  money  for  the  settlement  of  their  debts  and  the  balance  paid  to  the  College 
Investment  Company,  to  whom  they  are  indebted  for  their  original  investment  and  which  may  be 
considered  as  the  heir  or  heirs.  The  manager  of  the  College  Investment  Company,  if  he  has  the 
time,  or  any  student  far  enough  along  in  his  course  to  do  original  work,  may  be  appointed  as  trus- 
tee or  administrator.  The  student  so  appointed  can  conduct  the  business  in  connection  with  his 
own  set  of  books  very  simply,  but  at  the  same  time  in  a  way  to  obtain  therefrom  a  very  valuable 
practice.  If  sufficient  occasions  offer  in  the  schoolroom,  each  student  should  in  turn  be  ap- 
pointed to  adjust  the  estate  of  some  insolvent  or  "deceased"  person. 

I.  A  student  being  duly  appointed  as  administrator  or  trustee,  the  teacher  should  assist  him 
in  obtaining  possession  of  all  resources  of  the  decedent  or  bankrupt  student.  A  list  of  these  should 
be  easily  obtained  from  the  latter's  last  balance  sheet  on  file  at  the  teacher's  desk,  and  should  be 
verified  by  the  trustee  or  administrator,  who  will  be  furnished  by  the  teacher  with  authority  to 
secure  the  said  decedent's  or  bankrupt's  bank  account,  and  to  collect  all  outstanding  notes  and  ac- 
counts, and  will  be  put  in  possession  of  all  merchandise  or  other  property.  The  administrator  or 
trustee  should  then  give  what  the  teacher  in  charge  decides  to  be  legal^  notice  to  all  creditors  to 
present  their  claims  for  settlement  within days,  and  as  soon  as  the  limit  for  the  pre- 
sentation of  claims  has  expired,  he  should  make  out  a  complete  balance  sheet  showing  the  condi- 
tion of  the  said  decedent's  or  bankrupt's  estate  and  what  balance,  if  any,  will  be  left  for  the  Col- 
lege Investment  Company  when  the  debts  of  said  estate  are  paid,  together  with  the  cost  of  settle- 
ment (the  student  conducting  the  settlement  may  be  allowed  to  take  10%  of  the  net  value  of  the 
estate  as  his  fee)  ;  or  if  the  estate  be  insolvent,  showing  what  per  cent,  it  will  pay  on  the  dollar  to 
all  creditors,  not  counting  the  College  Investment  Company,  which  must  in  that  case  be  con- 
sidered to  have  lost  its  investment.  As  soon  as  this  balance  sheet  is  approved  by  the  teacher,  the 
administrator  or  trustee  will  proceed  to  take  possession  of  the  decedent's  or  bankrupt's  cash,  to 
turn  his  property  into  cash  and  to  collect  his  outstanding  notes  and  accounts,  making  for  all  cash 

received  in  this  collection  the  same  entry,  namely,  Cash  to Estate,  the  blank  being 

filled  by  the  decedent  or  bankrupt  student's  name,  and  the  entry  followed  by  an  explanation  de- 
scribing the  nature  of  the  assets  collected.  Checking  the  assets  on  the  balance  sheet  approved  by 
the  teacher  will  be  a  sufficient  additional  record  of  the  collection  made.^ 


1.  "Deceased."  In  the  schoolroom  this  term  will  be  understood  to  apply  to  any  student  who  has  dropped 
out  of  school  without  settling  his  accounts,  the  financial  condition  in  which  his  creditors  will  be  left  being  the 
same. 

2.  Some  liberty  in  the  shortening  of  the  time  required  by  law  is  permissible  and  proper  in  the  school- 
room and  each  school  may  best  rule  on  this  point  for  itself.     Consult  your  teacher. 

3.  More  elaborate  bookkeeping  might  be  made  out  of  this  practice  by  taking  all  the  assets  of  the  estate 
onto  the  books  of  the  administrator  or  trustee,  and  in  collecting,  opening  an  account  with  Insolvency,  but 
the  plan  outlined  is  simpler  and  includes  all  the  essentials  necessary  to  a  correct  settlement  and  accounting. 


264  CAMPBELL'S  ACTUAL  ACCOUNTING 

2.  As  soon  as  the  assets  of  the  estate  are  collected  in  cash  (notes  not  matured  may  be  dis- 
counted at  the  bank),  the  trustee  or  administrator  will  proceed  to  pay  each  creditor  the  amount 
of  his  claim,  if  the  estate  be  solvent,  or  the  per  cent,  payable  on  his  claim  if  the  estate  be  insolvent, 
and  to  make  entry  for  each  of  these  payments,  crediting  Cash  and  charging Es- 
tate, explaining  such  entry  by  a  memorandum  of  the  liability  settled  and  checking  the  liability  on 
the  balance  sheet  approved  by  the  teacher. 

3.  When  all  liabilities  are  settled,  the  trustee  or  administrator  may  draw  a  check  in  favor  of 

himself  or  make  an  entry  crediting  Commissions  in  his  own  books  and  charging  .  ., 

Estate  for  the  per  cent,  allowed  him  in  this  settlement.     Then   if  the  estate  be   solvent,  he  will 

draw  a  final  check  for  the  balance  of  the Estate  account  in  favor  of  the  College 

Investment  Company,  charging  it  to  the  estate  the  same  as  other  entries  and  submitting  to  the 

teacher  as  evidence  of  the  completion  of  his  work  a  copy  of  the Estate  account 

as  it  appears  on  his  books  with  the  approved  balance  sheet  on  which  all  items,  both  collected  and 
paid,  have  been  checked. 


INDEX 


References  are  to  sections  and  their  subdivisions.      Bold    face    numbers   refer    to    sections.      When 
pages  are  referred  to  they  are  designated  by  the  abbreviations  "p."  or  "pp." 


Abstract  of  Ledger,  Single  Entry,  i6i,  i8  (b). 

Acceptance,  Entry  for,  57  (b). 

Acceptance  of  a  Draft,  Defined,  50;  50  (a). 

Account  Sales,  106,  21,  26. 

Accounts,  Book  of,  10. 

Adding  Ledger  Accounts,  44. 

Addresses  in  Ledger,  23  (c)  and  (d),  footnote  2. 

Analytical   Proof  of  Merchandise,  76. 

Analytical  Statement,  Forms  of,  86;  100,  31   (f);  also 

p.  149;  173    (b). 
Articles  of  Incorporation,  170,  i. 
Associated  Offices,  182. 

Associated  Offices,  Ledger-Journal,  pp.  260,  261. 
Attorney  in  Fact,  57  (a),  footnote  i. 
Auxiliary  Books,  To  Open,  121;  126;  127;  130. 
Auxiliary  Books,  To  Post  and  Close,  136,  7,  8,  9,  10. 
Balanced  Accounts  in  Trial  Balance,  46,  footnote  2. 
Balance   Sheet,    Equalization   of  Capital  by   Interest 

in,  156. 
Balance  Sheet,  Extending  Items,  79. 
Balance  Sheet,  To  Close,  81. 
Balance  Sheet,  To  Make  Out,  78. 
Balance  Sheet,  Two  Partners,  106,  31  (a),  (b),  (c). 
Balance  Sheet,  Three  Partners,  155  (a). 
Bank  Deposits,  Checks,   18. 

Bank  Deposits,  Bank   Drafts  and  Notes  or  Accept- 
ances, 106,  6. 
Bank  Drafts,  62;  106,  i,  3. 
Bills  of  Exchange,  Defined,  50  (c). 
Bills  of  Lading,  Order    B/L.    With    Draft,    106,    14 

(b);  143  (c). 
Bills  of  Lading,  Regular    Triplicate,    106,    18    (b) — 

F^orms  A,  B,  C. 
Bills  Payable,  Defined    and    Explained,    20    (a);    24 

(f). 
Bills  Payable,  Entry  When  Paid,  20  (a). 
Bills  Receivable  and  Payable  Accounts,  Proof  of,  69. 
Bills  Receivable  and  Payable  Accounts,  To  Close,  83 

(a). 
Bills  Receivable  and  Payable,  Lists  and  Schedules, 

86,  footnote  i. 
Bills  Receivable,  Defined  and  Explained,  24  (f). 
Bills  Receivable,  Entry  When  Paid,  24  (e). 
Blotter,  Uses  in  Posting,  29,  footnote  2  on  p.  25  and  i 

on  p.  26. 
Bookkeeping,  Defined,  3,  4. 
Book  of  Accounts,  10. 
Books,  Foundation  Set,  7. 
Books  of  Original  Entry,  8. 
Branch  Houses,  137,  i  and  11;  142,  i. 
Branch  House  Statements,  144,  11  (d). 
Business,  Defined,  i. 

Business  Statement,  Disposition  of  Gain,  106,  31  (f). 
Capital  Equalized  by  Interest,  154,  7;  156. 
Capital,  Student's  Investment,  91,  i. 
Careful  Work,  90,  4. 
Cartage  Account,  52  (d). 
Cartage  Bills,  52  (d);  106,  14,  Form  56. 
Cash  Balance,  Ruling  the  Account,  45  (b);  66  (f). 
Cash  Balance,  To  Prove,  45  (a);  66. 
Cash  Balance,  To  Prove,  in  Six-Column  Journal,  106, 

23. 


Cash  Book,  Discussed,  116;  117;  118;  120,  5. 

Cash  Book,  Posting,  120,  5. 

Cash  Book,  Single  Entry,  p.  216;  162  (b). 

Cash  Book,  With  Sub-Ledgers,  129. 

Cash  Column  of  Journal  as  Ledger  Column,  no,  2,  8; 

III,  6. 
Cash  Journal,  147. 
Certified  Invoice,  107  (f),  p.  135. 
Change  Wanted,  Memorandum,  91,  2  (b);  108,  4. 
Character  Building,  90,  i  and  2. 
Closing  Accounts  in  Ledger  on  Sale  of  Business,  157 

(a);  158;  170,3- 
Closing  Auxiliary  Books,  136,  7,  8,  9,  10. 
Computations,  Proof  of,  57,  footnote  2. 
Computing  Time   in   Schoolroom  Work,   91,   4   (c), 

footnote  2. 
Consignment  and  Shipment  Accounts,  Ledger  Title, 

106,  21,  25;  108,  footnote  5. 
Corporation  Books,  169  (c),  (d),  (e),  (f),  (g),  (h). 
Corporation,  Business  Statement,  173. 
Corporation,  Declaring   Cash    Dividend,    172,   13,    14; 

174,  I,  2,  3. 

Corporation,  Declaring  Stock   Dividend,   174,   12,   13; 

175.  I,  2.  .  ^ 
Corporation,  Dissolution  of  Corporations,  177. 
Corporation,  Increasing    Capital   Stock,   174,  12,   13; 

175,  h  2. 
Corporation,  Organization,  170,  I,  2;  171. 
Corporation,  Reducing  Stock  to  Meet  Loss,  175,  4,  6. 
Corporation,  Sale  of  an  Individual's  Stock,  172,  9. 
Corporation,  Sale  of  Treasury  Stock,  172,  3. 
Corporation.  Taking  in  Stock  for  a  Debt,  174,  4. 
Corporation,  Transactions  in  Stock,  171,  175. 
Corporation   Work,  Outline  VII,  168. 
Correspondence,  91,  4  (c)  and  (d). 
Credit,  Memorandum  of,  112,  4. 
Creditors'  Ledger,  28,  footnote  i;  126-136. 
Customers'  Ledger,  28,  footnote  i;  126-136. 
Daily  Closing  of  Books,  45;  46;  47;  65;  66;  67;  68;  69; 

70;  91,  II. 
Daily  Report,  Instructions  for  Making,  98;  99. 
Date,  in  Journal,  17, 
Dating,  16,  footnote  2. 
Daybook-Journal,  7. 
Deeds,  Quitclaim,  ifS,  7  (d);  159. 
Deeds,  Warranty,  137,  9  and  10;  138;  139. 
Deposit  Ticket,  18. 
Discount,  Cash,  119,  3  (a). 
Discount,  Trade,  55,  footnote  i. 
Disposition  of  Gain,  Corporation,  173. 
Disposition  of  Gain,  Partnership,  106,  31  (f). 
Dissolution  of  Partnership,  157;  158. 
Double  Entry,  5;  6. 
Double  Entry,  To   Change   from  Single   to    Double, 

167. 
Draft,  Acceptance  of.  Defined,  50;  50  (a). 
Draft,  Bank,  62;  106,  i.  3. 
Draft,  Customer's  Bank,  106,  14  (b). 
Draft,  Defined  and  Explained,  50  (b). 
Draft,  Sight,  Entry  for,  56  (a). 
Draft,  Time,  Entry  for,  57  (b). 
Draft,  Uses  of,  51;  53,  footnote  i. 


265 


266 


INDEX 


Entries,  Combined,  p.  ii,  footnote  i. 

Entries  in  Journal,  Division  of,  23  (d). 

Entries  in  Journal,   To   Separate    Between,   13    (a), 

footnote  2. 
Entry  for  Note,  58. 
Entry  for  Sight  Drafts,  56  (a). 
Entry  for  Time  Drafts,  57  (b). 
Equitable  Settlement  of  Accounts,  91,  8;  168,  4;  172, 

i;  174,  i;  174,  8  (b);  177. 
Errors  in  Trial  Balance,  To  Find,  71;  72;  92. 
Errors  not  Covered  by  Trial  Balance,  To  Find,  96. 
Errors,  To  Correct,  76  (b);  96  (e). 
Estates,  To  Settle,  183. 
Evolution  of  Cash  Book,  116;  117;  118. 
Exchange,  Bill  of.  Defined,  50  (c). 
Expense,  Inventory  of,  77. 
Expert  Report,  94;  95. 
Filling  Cents  Place,  32  (a). 
Four-Column  Journal,  131-133;  136,  8. 
Freight  Bills,  106,  14  (b),  Form  55. 
Gain,  Merchandise,  22;  79  (b). 
Gains,  Defined,  78  (b). 
Installment  Book,  169  (d). 
Interest  Accounts,  54,  footnote  i. 
Introduction  to  Bank,  91,  2,  footnote  2. 
Inventory,  Liability,  t)efined,  77  (c). 
Inventory  of  Expense,  77. 
Inventory  of  Merchandise,  75;  93;  106,  28. 
Inventory  of  Salaries,  77. 
Inventory,  Resource  Defined,  77  (c). 
Invoice  Book,  126;  128;  162  (a). 
Invoice,  Certified  Form,  107  (f),  p.  135. 
Invoice  of  Shipment,  106,  14. 
Invoice  Record  Book,  Double  Entry,  169  (a). 
Invoice  Record  Book,  Single  Entry,  162  (a). 
Invoices,  Forms  of,  15;  19;  21;  23  (f);  55  (b);  57;  60 

(b);9i,  6  (b);  107,  p.  I35- 
Invoices,  Incoming,  Payment  of,  91,  9. 
Invoices,  Incoming,  To  Check  and  Enter,  91,  5. 
Itemizing  Sales,  23  (e). 
Joint  Note,  Form,  108,  8. 

Journalizing,  Rule  for,  12;  12  (b);  19;  78  (b). 
Journal,  Four-Column,  131-133;  136,  8. 
Journal,  Ledger-,  260,  26i| 
Journal,  Model,  Two-Column,  25. 
Journal,  Numbering  Pages,  17,  2,  footnote. 
Journal,  Single  Entry  (Daybook),  161,  8  (a)  and  (b). 
Journal,  Six-Column,  104;  105. 
Journal,  Three-Column,  122. 
Ledger  Accounts,  Adding,  44. 
Ledger  Balances,  What  They  Represent,  79  (1). 
Ledger,  Defined,  9;  10. 
Ledger-Journal,  Form,  pp.  260,  261. 
Ledger  No.  i,  Model,  47. 
Ledger  No.  2,  Model,  85. 
Ledger,  Opening  the,  28. 
Ledger,  To  Close,  82. 
Ledgers,  Customers'  and  Creditors',  28,  footnote   i; 

126-136. 
Letter  Forms,  55;  60  (a),  (b);  61  (b);  63  (a),  (b);  84 

(d). 
Liabilities,  Defined,  22,  footnote  2;  78  (b). 
Liability  Inventory,  Defined,  77  (c). 
Loss  and  Gain  Account,  To  Close,  82  (g). 
Memorandum  of  Change  Wanted,  91,  2  (b);  108,  4. 
Memorandum  of  Credit,  no,  4. 
Mercantile  Chattel  Mortgage,  160. 
Merchandise,  Defined,  2. 
Merchandise,  Gains,  22;  79  (b). 
Merchandise,  Inventory  of,  75;  106,  28. 
Merchandise,  Proof  of,  76;  93;  94;  95;  96;  106,  30. 
Model  Journal,  25. 


Model  Ledger  No.  1,  47. 
Model  Ledger  No.  2,  85. 
Monthly  Statements,  84,  (a),  (b). 
Mortgages,  Chattel,  158,  7  (h) ;  160. 
Mortgages,  Real  Estate,  137,  10  (b);  140. 
Note,  Defined,  20. 
Note,  Entry  for,  58. 
Note  Forms,  Firm,  23,  Form  15. 
Note  Forms,  Individual,  20;  142,  9  (c). 
Note  Forms,  Joint,  108,  8. 
Note  Forms,  Joint  and  Several,  55  (c). 
Notes  Payable,  20  (a);  68;  86. 
Notes  Receivable,  24  (f);  67;  83  (a). 
Notice  of  Dissolution,  115  (b);  158,  7  (g). 
Notice  of  Note  Collected,  54. 

Notice  of  Note  Due,  56,  Form  25;  106,  13,  Form  50. 
Opening  Auxiliary  Books,  121;  126;  127;  130. 
Opening  Entries,  Corporation  Books,  171,  i  and  con- 
text. 
Opening  Entries,  Double  Entry,  12;  91;  105  (a),  (b), 

(c);  119;  120,  10;  132;  133;  145;  147. 
Opening  Entries,  Single  Entry,  161,  8;  165. 
Opening  the  Ledger,  28,  91,  11  (b). 
Order  B/L.,  106,  14,  (b),  Form  54;  143,  6. 
Orders,  Acknowledgment  and  Shipment  of,  107. 
Orders  by  Mail,  Miscellaneous,  55  (a);  60  (a),   (b); 

62  (a). 
Orders  by  Mail,  on  Regular  Blanks,  23  (a),  (b),  (f); 

49. 
Orders  from  Students,  91,  7. 
Orders  to  Wholesale  Houses  and  Mfgrs.,  91,  4. 
Original  Entry,  Books  of,  8. 
Paging  Journal,  17,  2,  footnote. 
Paging  Ledger,  91,  11,  (b). 
Partnership  Closing,  Private  Accts.,  114. 
Partnership  Closing,  Single  Entry,  165,  11,  12. 
Partnership  Contracts,  103;  148. 
Partnership,    Opening    Entries,    Double    Entry,    105; 

132;  133;  145;  147. 
Partnership,  Opening  Entries,  Single  Entry,  165. 
Payable,  Accounts,  28,  footnote;  126-136. 
Payable,  Notes,  20  (a);  68;  86. 
Personal  Accounts,  To  Close,  83  (b). 
Petty  Accounts,  165,  i,  note. 
Plan  of  Schoolroom  Business,  90,  3. 
Posting,  28-43. 
Posting  and  Closing  Auxiliary  Books,  120,  5;  136,  7, 

8,  9.  10. 
Posting,  Cash  Book,  120,  5. 
Posting,  Change  of  Date,  3a, 
Posting,  Change  of  Page,  32. 
Posting,  Filling  Cents  Place,  33  (a). 
Posting,  How  to  Post,  30. 
Posting,  Ledger  Explanations,  33  (a);  34;  35;  36;  37; 

38;  40;  41;  42;  43. 
Posting,  Omitting  Date,  32  (b). 
Posting,  Post-Checking,  30. 
Price-List,  C.  W.  Burke's,  84  (c). 
Prices,  Fractional,  23  (a),  footnote  i. 
Proof  of  Computations,  57,  footnote  2. 
Proof  of  Merchandise,  76;  93;  94;  95;  96;  106,  30. 
Proprietor's  Accounts,  To  Close,  82  (h). 
Proving  Cash,  45  (a);  66;  106,  23. 
Proving  Check  Book  with  Pass  Book,  46  (a). 
Questions  to  Test  Your  Knowledge,  26,  74,  88. 
Receipt  for  Lost  Note,  125,  10. 
Receipt  for  Rent,  91,  3  (a). 
Receivable,  Accounts,  28,  footnote;  126-136. 
Receiva»ble,  Notes,  24  (f);  67;  83  (a). 
References,  60  (b),  footnote  2. 
Resource  Inventory,  Defined,  77  (c). 
Resources,  Defined,  22,  footnote  I. 


INDEX 


267 


Review  Questions,  26;  74;  88. 

Ruling  Practice,  48. 

Salaries  Account,  52  (c). 

Salaries  Inventory,  77. 

Sale  of  Business,  To  Corporation,  170,  3. 

Sale  of  Business,  To  Partner,  157  (a);  158. 

Sales,  Billing,  91,  6  (b). 

Sales  Book,  121  (a). 

Sales  Book,  Commission,  148. 

Sales  Book,  Department,  169  (b). 

Sales  Book,  Loose-Leaf,  178;  181. 

Sales  Book,  Single  Entry,  162,  i  (c). 

Sales,  Entering,  91,  6  (c);  121  (a). 

Sales,  Filing  Tickets  of,  91,  6  (d). 

Sales  in  Schoolroom,  Securing  Orders  for,  91,  6;  97, 

Sales,  Payment  for,  91,  10. 

Sales,  to  Townsite  and  Trading  Co.,  Terms  of,  91,  8. 

Salesmen,  Accounts  w^ith,  23  (c),  (d),  footnote  3;  41, 

note. 
Scratch  Paper  Habit,  78,  footnote  i. 
Settlement  of  Estates,  183. 
Shipment  Ledger,  Form,  145. 

Shipments,  Ledger  Titles,  106,  21;  108,  5,  footnote. 
Shipments,  Routing  of,  107. 
Signature  Card,  52. 
Single  Entry,  5;  6;  161-166. 

Single  Entry  Cash  Book,  Double  Page,  162,  i  (b). 
Single  Entry  Cash  Book,  Single  Page,  p.  216;  161,  9. 
Single  Entry,  Proof  of  (Trial  Bal.),  161,  18  (a),  (b); 

163,  8,  9. 


Single  Entry,  Proof  of  Sales,  161,  18  (c),  (d),  note. 

Six-Column  Journal,  Form  of,  105. 

Six-Column  Journal,  To  Keep,  104. 

Statements,  Analytical,  Forms  of,  86;  106,  31  (f);  173 
(b);  p.  149. 

Statements,  Monthly,  84  (a),  (b). 

Stock  Certificate  Book,  169  (h). 

Stock  Dividend  Book,  169  (f). 

Stock  Ledger,  169  (e). 

Stock  Subscription  Book,  169  (d). 

Stoppage  in  Transitu,  51. 

Sub-Ledgers,  To  Prove  After  Opening,  134;  135. 

Time,  How  Computed  in  Schoolroom,  91,  4  (c),  foot- 
note 2. 

Trade  Discount,  55,  footnote  i. 

Trial  Balance,  46,  70. 

Trial  Balance  for  General,  Customers',  and  Creditors' 
Ledger,  135. 

Trial  Balance,  To  Find,  71;  72;  92. 

Trial  Balance,  To  Prove  Creditors'  Ledger,  136,  14. 

Trial  Balance,  To  Prove  Customers'  Ledger,  136,  13. 

Voucher  Check,  102,  7,  10. 

Warranty  Deeds,  137,  9,  10;  138;  139. 

Wholesale  Office,  178. 

Wholesale  Office,  Acct.  Sales  Sheet,  178,  5. 

Wholesale  Office,  Cash  Book,  178,  4  (a). 

Wholesale  Office,  Proof,  179. 

Wholesale  Office,  Receiving  Book,  178,  5. 

Wholesale  Office,  Sales  Book,  178,  6;  181  (b). 


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